Just days after long time tech darling surpassed $4 trillion in market cap, Apple delivered an earnings report that beat on both the top and bottom. However, the reason we saw shares jump by over 4% in after-hours was due to CEO Tim Cook’s robust guidance on future iPhone 17 sales forecasts. After Apple opened on Friday at a new all-time high above $277, it had a slight dip to create a better entry. I want to use options to create a short-term income stream and also utilize patience to establish a bullish opinion as I believe APPL will run up and test $300 before year end. AAPL 1M mountain Apple, 1 month The stock initially sold off in after-hours before jumping higher due to some confusion about iPhone 17 sales in the quarter. Apple’s fourth quarter accounts for a tiny portion of iPhone 17 sales, as the phones were only on sale for a few weeks ahead of the end of the financial period. I believe Apple (which has been a laggard in 2025) should see some tech rotation as investors look to chase returns into year end. The Trade (Sold a Risk Reversal) Sold the $270 APPL 12/19/25 put for $8.75 Bought the $280 APPL 12/19/25 call for $5.75 Apple was chopping around $270 after the open when this credit spread was executed An investor will collect $3.00 per spread or $300. An investor will have to be willing to own Apple at $267 in the event Apple moves lower at expiration. Upside is unlimited as the trade allows an investor to collect $3 and be long above $280. Disclosure: Kilburg is long call on this spread and sold this risk reversal. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
