Momentum for APP seems to be now fading away with SP500 having lost a lot of ground recently. P/E is also elevated so there is possibility APP goes down further with more weakness in the overall market.
Expecting the stock price to remain under $335 until March expiry, so sold a March monthly expiry Bear Call Spread.
| SELL | -10 | TO OPEN | APP | 21-Mar-25 | 335 | CALL | 6.30 | 0.95 | 25TRD-006 |
| BUY | 10 | TO OPEN | APP | 21-Mar-25 | 340 | CALL | 5.35 | CREDIT |
The spread will expire in around 15 days and there are no earnings before that.
We are looking at a potential full credit of $950 on $4050 investment, resulting in around 23% approx returns if price does not breach upper threshold of $335.
