Do you want to learn how to day trade Apple stock and options? If so, you have come to the right place!
In this guide, we will teach you everything you need to know about successfully day trading Apple stock and options. We will cover topics such as market analysis, risk management, and order entry. We will also provide you with a number of helpful tips and strategies that you can use when trading Apple stock and options.
So what are you waiting for? Start learning today!
Apple Inc.
Apple Inc. (AAPL) is a technology company that was founded on April 1, 1976, by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company’s first product was the Apple I, a personal computer that was built in Jobs’ garage. Apple went public on December 12, 1980, and the stock has split four times since then.
The company is headquartered in Cupertino, California. As of September 2020, Apple had a total value and market capitalization of $2.2 trillion and was the most valuable publicly traded company in the world.
The company designs, develops and sells consumer electronics, computer software, and online services. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker.
Apple’s software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iWork productivity suite. Its online services include the iTunes Store, the App Store, Apple Music, and iCloud.
Day Trading Apple
Apple has a long history with day traders. In fact, some of the earliest day traders were Apple fans who traded stock in the company before it went public. And ever since then, Apple has been a popular stock among day traders.
There are a number of reasons for this.
Proven Track Record
For one thing, Apple is a high-quality company with a proven track record of innovation and success. This makes it a relatively safe stock to day trade.
High Liquidity
Additionally, Apple is a large company with a lot of liquidity, which means that there are always buyers and sellers available to trade the stock.
Good Volatility
Finally, Apple is a volatile stock, which can make it more profitable for day traders.
However, day trading Apple is not without its risks. The stock can be volatile, and there is always the potential for losses. Therefore, it is important to have a solid understanding of the market and to use risk management strategies when day trading Apple stock.
In the following sections, we will teach you everything you need to know about successfully day trading Apple stock and options. We will cover topics such as market analysis, risk management, and order entry. We will also provide you with a number of helpful tips and strategies that you can use when trading Apple stock and options.
Apple Stock
Apple is one of the most popular stocks on the market for day trading. It is also one of the most volatile stocks, which can make it a risky investment. However, if you know how to trade it correctly, Apple can be a profitable investment. Again, here are some things you need to know about Apple stock:
- Is traded on the Nasdaq exchange under the ticker symbol AAPL
- Is a component of the Dow Jones Industrial Average and the S&P 500 Index
- Has a market capitalization of over $2.2 trillion
- Is one of the most actively traded stocks on the market
Market Trends
In terms of past performance, Apple stock has a long history of outperforming the market. In fact, over the past 10 years, Apple stock has averaged annual returns of over 25%. Additionally, Apple stock is one of the most volatile stocks on the market, which can lead to large profits for day traders.
When analyzing Apple stock within your day trading strategies, it is important to keep an eye on the overall market trends. Apple stock tends to be very sensitive to changes in the broader market. For example, if the Dow Jones Industrial Average is down, chances are that Apple stock will also be down. However, there are times when Apple stock will move in the opposite direction of the market.
In other words, there are a few more things that you need to take into account when analyzing the market. The first is the overall trend. Is the market trending up or down? The second is the relative strength of Apple stock. Is Apple outperforming or underperforming the market? The third is volatility. Is the volatility of Apple stock high or low?
This is why, as part of your trading strategies, it is important to do your own research before making any trades.
Earnings Reports
While day trading, in addition to following the overall market trends, you also need to keep an eye on Apple’s earnings reports. Apple stock tends to be very volatile around earnings releases. This is because investors are constantly trying to predict how well the company will do in the future. If you are planning on trading Apple stock around the earnings releases next session, it is important to be very careful when applying this information towards forecasting and predicting future results.
Buyback Program
Another thing to keep in mind when trading Apple stock is the company’s share repurchase program. In recent years, Apple has been buying back its own shares in an effort to increase shareholder value. This buyback program has had a positive effect on Apple stock. When the company announces a share repurchase program, it is usually a good time to buy Apple stock.
Apple Options
In addition to day trading Apple stock, as a day trader, you can also learn about the options market and, in turn, trade Apple options.
Options Contract
An options contract gives the holder the right, but not the obligation, to buy or sell 100 shares of a particular stock at a set price within a certain time period. Options are a great way to trade Apple because they allow you to control a large number of shares for a relatively small amount of money.
Strike Price and Expiration Date
When day trading options, there are two things you need to know: the strike price and the expiration date. The strike price is the price at which the option holder can buy or sell the stock. The expiration date is the date at which the option expires and can no longer be traded.
Calls and Puts
There are two types of options: call options and put options. Call options give the holder the right to buy the stock, while put options give the holder the right to sell the stock. When buying call options, you are betting that the stock will go up. When buying put options, you are betting that the stock will go down.
The Greeks
When day trading options, it is also important to know about the Greeks when trading options. The Greeks are a set of statistical measures that are used to determine how an option will react to changes in the underlying stock price. The four main Greeks are Delta, Gamma, Theta, and Vega.
Technical Analysis
When performing technical analysis on Apple stock, short term traders will want to look at the company’s price chart. The price chart can give you a good idea of the overall trend of the stock. You can also use the price chart to identify key support and resistance levels.
Support and Resistance
Support and resistance levels are important when trading any stock, but they are especially important when day trading. These levels act as a sort of ceiling and floor for the stock price. When the stock price reaches a support level, it is usually a good time to buy. When the stock price reaches a resistance level, it is usually a good time to sell.
MACD and RSI
Two technical indicators that are often used when day trading Apple stock are the MACD and RSI. The MACD is a moving average convergence divergence indicator. This indicator is used to identify trend changes. The RSI is a relative strength index. This indicator is used to identify overbought and oversold conditions.
Risk Management
Day trading Apple stock and options can be risky because the stock can be volatile and there is no guarantee that the stock will move in the direction that you expect. Additionally, you need to be able to make quick decisions when trading options, and if you are wrong, you could lose a lot of money very quickly.
However, if you have a solid trading strategy and you are able to manage your risk, day trading Apple stock and options can be profitable.
Whether trading stocks or options, your Apple day trading activities in the stock market should involve risk management. Here are a few things that you need to keep in mind.
Protect Your Remaining Position
The first is your stop loss to protect your remaining position. This is the price at which you will exit your trade if the market goes against you.
Determine Your Position Size
The second is your position size. This is the number of shares or contracts that you will trade. When determining your position size, you need to keep in mind your stop loss and risk-to-reward ratio. As a reminder, your stop loss is the amount of money that you are willing to lose on a trade.
Determine Your Risk-to-Reward Ratio
The third is your risk-to-reward ratio. This is the amount of money you are willing to risk for every dollar you are looking to make. For example, if your stop loss is $100 and your risk-to-reward ratio is two-to-one, then you are willing to risk $100 for the potential to make $200.
Order Entry
When entering an order, you need to take into account the type of order, the price, and the time frame. The type of order that you want to use depends on your trading strategy. There are three types of orders: market orders, limit orders, and stop orders.
Market Order: A market order is an order to buy or sell a security at the current market price.
Limit Order: A limit order is an order to buy or sell a security at a specified price.
Stop Order: A stop order is an order to buy or sell a security when it reaches a certain price.
In addition, the price and time frame that you want to use depends on your trading strategy. If you follow these tips, you will be well on your way to success when trading Apple stock and options.
Summary: How to Day Trade Apple
This lesson provides day trading strategies that many traders apply to how they trade Apple stock and options. We have covered market analysis, risk management, and order entry.
Apple has been on a tear in recent years, and options provide a way to trade this stock at a relatively low cost. When analyzing the market, there are a few things that you need to take into account, including overall trend, the relative strength of Apple, and volatility. In terms of risk management, you need to keep in mind your stop loss, position size, and risk-to-reward ratio. When entering an order, you need to take into account the type of order, the price, and the time frame.
If you follow these tips, you will be well on your way to success when trading Apple.
Learn More
Would you like to learn more day trading strategies that work with Apple and other tickers?
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”
