Apple (APPL) has shed 15% in just one month. A glance at AAPL’s six-month daily chart shows the stock trading in a well-defined range. Support sits at $245, while resistance is near $260 and extends to $265. This technical setup aligns well with options-based strategies designed to benefit from range-bound action. Looking ahead, AAPL is scheduled to report earnings on Thursday January 29, after the market close. In the lead-up to such events, options premiums tend to rise as traders position for volatility. This phenomenon, driven by anticipation rather than actual movement, is captured in the concept of implied volatility (IV) — often referred to as the added “juice” in short-dated options surrounding earnings. The options market is currently pricing in a $10.49 move in either direction for AAPL post-earnings. This gives a clear sense of the expected magnitude of the move, even if the direction remains uncertain. While the direction of the move is still a wildcard, this particular trade setup doesn’t depend on guessing it. The two pieces of information above are sufficient to construct a strategy that can benefit regardless of whether AAPL moves up or down—as long as it stays within that range. What makes this setup particularly attractive is AAPL’s historical behavior around earnings. Looking at the past three quarters, the stock has stayed within the expected move in all three instances. Enter the earning iron condor I identified this setup using the earnings iron condor scanner here , which automatically calculates optimal strike selections based on expected moves, probabilities and risk/reward metrics. Selling an iron condor is an options trading strategy where you simultaneously sell out-of-the-money call spreads and put spreads. Since you are selling spreads (instead of selling naked calls and puts), your risk and reward are both defined at the time of entry. To construct this trade, all I need to do is figure out two things: Which strikes to choose to sell the call spread? Which strikes to choose to sell the put spread? Once I have this information, all I have to do is enter this entire trade as one single unit, also known as an iron condor. Most trading platforms will allow you to sell an iron condor with minimal effort. Constructing the put spread The expected move calculation shows that $255.41 (current price) – $10.49 (expected move) = $244.92. This means that AAPL is not expected to drop below $245. Conveniently, this level also coincides with the technical support zone visible on the chart above. Given AAPL’s tendency to stay within expected moves, I will sell a $245 put and buy a $240 put for protection. This creates a 5-point-wide put spread. Constructing the call spread On the upside, $255.41 (current price) + $10.49 (expected move) = $265.90. This means AAPL is not expected to rally above $265. This level also aligns with the resistance zone on the chart above. To maintain balance, I will sell a $265 call and buy a $270 call for protection, creating a symmetrical 5-point wide call spread. By doing this, I have constructed a balanced iron condor, where both sides carry equal risk and roughly equal probability of success. Most trading platforms will allow you to put this trade on as one unit by selecting “sell iron condor” as the trade structure. Trade structure and analysis Sell -1 AAPL JAN30 265-270 C / 245-240 P Iron condor Credit (also max profit): $1.40 per share ($140 per contract) Max loss: $3.60 per share ($360 per contract) Trade Execution: I plan to enter 1 to 2 hours before the close on Wednesday, January 29th, when implied volatility typically peaks just before earnings. Both sides carry approximately 80% probability of success. With this type of setup, traders historically win around 8 out of 10 times when managed well. If AAPL exceeds the expected range, I’ll be watching for a retrace during Friday’s first hour or two. Having exit rules defined in advance is critical for this strategy. The ideal outcome is for AAPL to stay between $245 and $265 through Friday’s close, allowing me to capture the full $140 credit. — Nishant Pant Founder: https://tradewithmaya.com/ Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its 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 CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. 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