Apple Inc. (AAPL) opened at $165.11. So far today the stock has hit a low of $163.72 and a high of $169.01. AAPL is now trading at $161.77, down 7.27 (-4.30%%). After hitting a one-year low of $82.86 in February, the stock hit a one-year high of $202.96 in December. AAPL shares are trading lower today.
The stock was down yesterday as well, as investors and speculators were disappointed with CEO Steve Jobs’ keynote address yesterday at the MacWorld conference, in which he introduced the iTunes movie rental service and the MacBook Air laptop. Jobs could not live up to the expectations he built after the introduction of the iPhone at last year’s conference. Technical indicators for AAPL are bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.
If you’re looking for a hedged play on this stock, consider a February bear-call credit spread above the $220 range. AAPL hasn’t been above $203 at all in the past year and has shown resistance around $180 recently. This trade could be risky if the company’s earnings next week are positive, but even if that happens, this position could be protected by resistance AAPL might find at its year high at $202, where it topped out earlier this month.
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