Apple Inc. (NASDAQ:AAPL) Ramping up Content Deals

Apple Inc. (NASDAQ:AAPL) Ramping up Content Deals

Apple Inc. (NASDAQ:AAPL) Ramping up Content Deals

Options traders took aim at technology firm Apple Inc. (NASDAQ:AAPL) and Micron Technology, Inc. (NASDAQ:MU) on Friday. Apple is ramping up content deals, while Micron reports earnings this week. Ford Motor Company (NYSE:F) rounds out the group after Chinese auto sales plunged in May.

Let’s take a closer look:

Monday’s Vital Data: Apple Inc., Micron Technology, Inc. and Ford Motor Company
Monday’s Vital Data: Apple Inc., Micron Technology, Inc. and Ford Motor Company

Apple Inc. (AAPL)

Apple announced on Friday that it would spend $900 million on original video content this year. The company has even signed Oprah Winfrey to a multi-year deal. However, Apple has yet to say where or how viewers will watch this new content.

AAPL options traders took the news in stride. Volume on Apple stock options rose to 560,000 contracts, with calls snapping up 63% of the day’s take. Overall, the July put/call open interest ratio comes in at 0.67.

The recent rise in Apple’s put/call OI ratio is likely due to the stock’s drop of about 2.6% from its June highs. Profit taking is beginning to settle in after APPL tagged a fresh all-time high earlier this month.

With trade worries heating up, I would expect a bit more profit taking. In other words, look for a rising put/call ratio alongside elevated call volume for AAPL stock.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 196.28.

The projected lower bound is: 182.02.

The projected closing price is: 189.15.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 23.4900. This is not an overbought or oversold reading. The last signal was a sell 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.51. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 7 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -89. This is not a topping or bottoming area. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.100 at 188.740. Volume was 43% below average (neutral) and Bollinger Bands were 59% narrower than normal.

Open High Low Close Volume___
187.880 189.220 187.200 188.740 18,484,864

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 191.50 181.95 171.48
Volatility: 11 26 26
Volume: 24,917,564 28,436,238 31,154,438

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 10.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 30 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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