DaytradeTeam Brainzzzz

AAPL is showing some signs of slowing down, but the uptrend on the stock is still very much in tact here. In fact, this "breather" could be a real opportunity for alert options traders who are looking to cash in on the time premium decay in AAPL put options over the next week into the DEC expiration.

First, let's take a look at AAPL's 20 day chart so that you can see exactly what I mean:

Notice how the stock has continually bounced off of the uptrending line over the past month or so, and despite the market weakness of the past week (and AAPL's own troubles), AAPL is still significantly above the uptrend line.

Here's how we will be looking to play AAPL options over the next couple of days:

Look for low volume dips of $1.00 or more in AAPL stock price and spikes in the put option premiums. Sell the puts into this price spike and establish a bullish vertical credit spread or even leg into an iron condor or butterfly option spread position.

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