This crossover could result in near-term tailwinds
Apple Inc (NASDAQ:AAPL) stock has been climbing since its late January lows, last seen up 0.6% to trade at $271.69 and pacing for a third-straight pop with help from record iPhone sales. The Big Tech giant broke above a trendline with historically bullish implications last session, and with that breakout solidifying today, it could soon head back toward its Dec. 3 record high of $288.62.
The trendline in question is the equity's 50-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event has happened 16 times during the last thee years, after which Apple stock was higher one month later 75% of the time, averaging an 3.3% pop. From its current perch, a similar move would have the shares trading back above $280.
Short-term options traders remain firmly bullish on AAPL. This is per its Schaeffer's put/call open interest ratio (SOIR) that ranks in the 4th percentile of its annual range.
When weighing in on the security's next moves, options look like an attractive route. Options traders are pricing in low volatility expectations, per its Schaeffer's Volatility Index (SVI) of 2%, which ranks in the low 8th percentile of readings from the last 12 months.