Loop Capital Predicts New Record Highs for Apple Stock

However, options traders have been leaning put-heavy during the past two weeks

Emma Duncan

Managing Editor

Jul 6, 2018 at 9:24 AM

AAPL

Shares of tech powerhouse Apple Inc. (NASDAQ:AAPL) are set to open fractionally higher after a fresh price-target hike to $210 from $195 at Loop Capital. Analyst Ananda Baruah backed a "buy" rating and said the FAANG stock is "positioned net-positively for 2H 2018," thanks to "ongoing Services momentum," the upcoming launch of a lower-priced iPhone X, and the company's $100 billion buyback plan. Baruah's newly hiked target implies expected upside of 13.3% to Thursday's close at $185.40.

AAPL has been an outperformer on the charts long-term, with the iPhone creator less than a month removed from its early June record peak of $194.20. The stock currently sports a 28.6% year-over-year lead, and recently pulled back to its rising 50-day moving average.

Digging into options, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows Apple stock with a 10-day put/call ratio of 0.73, which ranks in the 98th percentile of its annual range. This lofty percentile indicates that puts have been purchased at a faster-than-usual clip relative to calls during the past two weeks.

Now is an affordable time to buy AAPL options. The stock's Schaeffer's Volatility Index (SVI) checks in at 20%, which registers in the 24th percentile of its annual range. In other words, near-term options are pricing in relatively low volatility expectations at the moment.

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.