Monday, February 13, 2012

Could This Be Where Apple Tops?

Could this be where Apple tops? (click picture for larger version)

I've been a holder of Apple stock for over 3 years, and I would love to see this move continue, but this two year chart shows a very interesting channel. Is Apple going to top around $510 at the top of this channel?

With Apple at its highest RSI overbought level in 2 years, I have to think we see a pullback in the stock. I started buying short-term puts and will buy more up to $510. 

This is more of a trade as I'm still holding stock (10% of portfolio) and I still believe in Apple's long-term fundamentals(the stock is still cheap).