Stock, Option and Futures Trading
DOW Supports – AAPL Weekly Options
If you go back to the major turning points on the Daily charts of the NQ, DOW and TF you will see how we played them on this blog. We have talked about symmetry support and resistance or the “Hidden Levels”.
On the DOW there are two levels that could hold as a major support. The 1st level is 12,422 and the 2nd level is 12,320 so it is a 100 point zone that could be significant support. Where we closed today could be minor support to get us back to the 12,950 area. It feels like we could have one more push down before having the bigger correction back into the 12,950 zone. The move down could be hard to break the low but then not make that much lower of a low. It is hard to tell because the market went straight up to the high on 2/29 so the drop could be larger than normal but the point is it still should be meet with buying. The most important part is the result of the buying not so much just the bounce off support.
With our members today we were looking at AAPL weekly 515 puts if AAPL takes out the 520 price and now AAPL could make a move to $510 if it takes out the $532.60 low.
If you take the trade we would look to get out tomorrow or at the open on Friday. The range of the option today was .55 to $2.50. A good way to play it would be to split up the position into weekly options and the ones that expire next week. The ones that expire next week closed at $3.75 with a range of $3.45 to $.630
If AAPL takes out the $537.80 high before the $532.60 low we would cancel this trade.
If AAPL takes out the $537.80 high it could trigger a short squeeze and push it to a new high and in that case we would want to be in calls but it would be best to see the NQ get through resistance first.