Options Corner: AAPL

Core Viewpoint - Wed Bush has become more bullish on Apple, raising its price target from 270 to 310, citing strong demand for the iPhone 17, which is currently tracking 10 to 15% ahead of the iPhone 16 [1][2]. Group 1: Demand and Production - Demand for the iPhone 17 is significantly higher than for the previous model, with early indicators showing a 10 to 15% increase [1]. - Supply checks indicate that Apple is increasing production by approximately 20% for both the base and Pro models of the iPhone [2]. Group 2: Market Strategies - Two bullish trading strategies for Apple were discussed, focusing on options trading to capitalize on the positive outlook [3][4]. - The first strategy involves buying a call option at a 245 strike price and selling a call at a 260 strike price, creating a bullish vertical spread with a potential risk-reward setup [5][6]. - The second strategy is a more conservative approach, involving selling an out-of-the-money put vertical, which provides a cushion to the downside while still maintaining a bullish stance [9][10]. Group 3: Risk and Profitability - The first strategy requires the stock to move above a break-even point of approximately 250.20, which is just over 1% above the current share price [8]. - The second strategy allows for profitability even if the stock price decreases slightly, with a break-even point set at 238, about 3.5% below the current trading price [12]. - The probability of the short 240 put finishing out of the money is estimated at around 67%, indicating favorable odds for this trade [13].