Today’s chart is of Apple Inc.
(NASDAQ:AAPL), which manufactures and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide.
Click to enlarge
What I Am Looking At:
Outperformance on a year-over-year basis, +35%.
Short-term trend remains down.
Facing resistance from the declining 40-day moving average and the downtrend line (blue).
Major January call open interest resides at the 550 strike (mostly bought-to-open) which could pressure shares lower if resistance is not taken out quickly.
Volume by price indicating possible resistance zone between $580-600.
Ten-day buy-to-open call/put ratio is 1.51.
For every 147 open calls there remains 100 open puts, which is close to an extreme in optimism.
Since August 2012 short interest has grown by 67% but only represents 2% of the float.
This article by Tony Venosa was originally published on Schaeffer's Investment Research.
Thirty-six out of 38 analysts covering AAPL rate the shares a “buy” or better.
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No positions in stocks mentioned.