# Apple (AAPL) share price loves this pattern.

Apple gains a lot of attention and shares rise rapidly then something disappoints and shares fall.  This pattern has existed since 2003.

With shares likely nearing a bottom we can take advantage of the increase volatility and sell for income. 

![image.png](https://ipfs.busy.org/ipfs/Qma4Ty82ERjPZ24LTFM74dA9syagjjXrM8rhBGaLgoj1JX)

Everyone knows about Apple's incredible business model and super sticky customer base.  These are some of the reasons why Apple was the first company to reach $1 Trillion valuation. 

Usually large companies run into problems where they can not find opportunity to generate cash like they did in the past.  Even with Apple's massive size this is not a problem today.  Sales are still growing 16% while earning a 22% profit margin.  Apple's has an incredible cash horde ($123 billion) they can use to buy up most SP500 companies, make many smaller acquisitions, develop new products or return cash to shareholders through dividends and buybacks.  Shares are cheap with an EV/EBITDA of just 8.3 today. 

## Trade Details:
**Sell to open, the January 18, 2019 $160 puts on Apple for $3.20 using a limit order.**  Earn 2% upfront for agreeing to buy shares at a 5% discount. 

At expiration if shares are above $160:  put sellers will keep the $3.20 earning a 20% annualized return.

At expiration if shares are below $160: put sellers will buy shares at a 7.3% discount to yesterday's closing price (including the payout). 

For protection use a stop loss at $142. The uptrend will be at risk and it is best to wait safely on the sidelines.

This is a rare opportunity to make a safe trade on AAPL shares.

https://steemitimages.com/DQmNuF3L71zzxAyJB7Lk37yBqjBRo2uafTAudFDLzsoRV5L/Upvote%20Gif.gif

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.