To The Moon

Check out this momentum strategy with an 85% win rate—

Recent positive catalysts for $Apple(AAPL)$ :

• Significant acceleration in total company revenue, iPhone revenue, and Mac revenue in Q3;

• Issued strong guidance for mid-to-high single-digit growth in Q4;

• Healthy inventory levels, with management still seeing strong demand momentum;

• Q3 earnings reveal increased capital expenditures and operating expenses, with ramped-up AI investment;

• The US announced a 100% tariff on semiconductors and chips, but offers exemptions for companies building or committing to build plants in the US;

• Apple raised its commitment for US domestic investment over the next four years to $600 billion;

• 2025 full-year iPhone EMS production plan increased from 235 million units to 247 million units;

Evaluation:

• Q3 earnings were healthy, with no major negatives;

• Tariff risk has been resolved;

• Building in the US puts Apple in a favorable position compared to hardware peers;

• Positive catalysts are gradually being realized, but the stock price is still relatively low;

• Target price of $220 based on a ~28x multiple of projected 2026/2027 EPS of $7.91.

Trading strategy:

• If you currently hold Apple shares and are concerned about the stock consolidating at high levels, you can sell out-of-the-money call options to earn some premium during this phase;

• If you want to chase Apple’s upside but are worried about getting caught at the top, consider selling out-of-the-money put options.

Reference strikes and expiries:

• Covered call strategy: $AAPL 20250815 230.0 CALL$  (87% win rate)

• Put selling strategy: $AAPL 20250815 210.0 PUT$  (85% win rate)