Are Big Tech Earnings Reports Worth the Roller Coaster Ride?
Recent big tech earnings reports have sent investors on a wild ride, with companies like Alphabet, Microsoft, Tesla, Meta, and IBM all experiencing significant price movements. Amidst this volatility, one tech giant seems to have fallen under the radar: Apple. Down 11% year to date, Apple is gearing up to release its earnings next Thursday, and I believe now is the time to consider adding it to your portfolio.
Despite expectations for a year-over-year decline in both earnings and revenue, Apple continues to be a strong player in the tech industry. With anticipated quarterly revenue of $90 billion, even a slight drop from previous quarters may not deter investors from snapping up shares at what could be considered a discounted price.
From a technical standpoint, Apple’s relative strength index is nearing oversold territory, indicating potential support at $160. Coupled with a strong history of respecting the 200-day moving average, Apple could be poised for a rebound in the coming weeks.
For investors looking to capitalize on Apple’s potential upside, a bullish risk reversal strategy may be worth considering. By selling a May 17 expiry APPL $165 put and buying a May 17 expiry AAPL $175 call, investors can position themselves for potential gains without incurring any initial cost.
While there is inherent risk in any investment strategy, particularly with options trading, the upside potential for Apple as it navigates through the tech industry’s current landscape is undeniable. As always, it’s important to conduct thorough research and consider seeking advice from a financial advisor before making any investment decisions.
Stay tuned to Extreme Investor Network for more unique insights and strategies to help you navigate the ever-changing world of investing. Remember, the key to success is staying informed and being prepared to act when opportunities arise.
