Apple Stock Higher Despite Store Closings, Purchase Limits

Most analysts remain bullish on AAPL

Deputy Editor
Mar 20, 2020 at 10:07 AM
facebook twitter linkedin

In response to the economic impact the coronavirus pandemic has had on the supply chains, Apple Inc (NASDAQ:AAPL) announced iPhone purchases from its online stores will limit customers to purchasing two handsets per person. Apple recently closed all of its brick-and-mortar stores outside of China and was handed a hefty fine -- over $1 billion -- by French antitrust regulators. Despite this, Apple stock is up 1.6%, last seen trading at $248.75.

Apple stock has spent the last five days consolidating below the $260 level after falling to a four-month low last week, bringing its year-to-date deficit to 16.6%. Thanks to today, AAPL has reclaimed its 200-day moving average, a trendline of support that was breached earlier this week.

Analysts continue to be bullish on the security. Of the 26 reporting firms, 20 are rating the security as a “buy” or better. Additionally, five analysts recommend a “hold” position, while one lone analyst says a “strong sell” is the right move. Echoing this is the equity’s consensus 12-month price target of $320.99 which is a nifty 31.13% premium to its current levels.

In the options pits, AAPL stock's put/call open interest ratio (SOIR) sits at 0.84, which ranks in the 10th percentile of its annual range. In other words, short-term options players have rarely been more call-heavy in the last 12 months. Additionally, Apple has been more volatile than expected during the past 12 months. This is based on its Schaeffer's Volatility Scorecard (SVS) of 99 (out of 100.) 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners