I have hidden this tout and the accompanying chart, with its 623.08 target, from public view because advertising it might compromise its usefulness. The target is sufficiently clear and compelling, however, that it should prove suitable for shorting no matter who knows about it. Accordingly, I’ll recommend buying four June 600 puts expiring 6/6 if and when the stock gets within 25 cents of the target. I estimate that the puts will be a good buy at that time for around 1.30, but check in the chat room before you jump on this trade, since a price adjustment may be necessary. I will further suggest a 0.40 stop-loss on the puts, meaning you should exit them with a market sell-stop if they trade for 0.40 less than our basis price. If the position survives, our next step will be to short puts of a lower strike for at lest as much as we’ve paid for the 600s. Meanwhile, if the futures don’t open on Monday with a gap higher, your trading bias should be bullish until such time as the target is reached. Catching the move would yield a profit than can be used to widen the stop on any subsequent short position entered. _______ UPDATE (12:13 p.m. post from the chat room): AAPL June 6 600 puts look like they’ll be trading for around a 1.60 bid when the stock reaches the target. No rush to buy them at that price, so stay posted for further guidance.
