Apple Inc (AAPL), the tech giant famous for the iPhone, is at a crucial point after some turbulent weeks. The stock dropped sharply from nearly $290 in December and has since settled into a trading range, capturing traders’ interest. After reaching its December peak of $290, AAPL fell about 16% and found support around $244. This support level has been strong, allowing the stock to bounce back and trade near the $258-$262 resistance zone, with a premarket price around $258.70. Currently, buyers are trying to maintain support, while sellers are defending resistance. If AAPL breaks above $262, it may aim to retest December highs, targeting the $275-$280 range. On the other hand, if it can’t break through resistance and drops instead, the $244 support could be tested again. A fall below $244 would suggest further losses, potentially down to the $230-$235 area. Bulls want AAPL to stay above $244, while bears expect it to struggle with resistance. How the stock handles this resistance in the coming days will likely influence Apple’s short-term direction. Right now, Apple is testing the upper edge of its trading range, just below the crucial $262 resistance level. With the Q1 earnings report coming soon, a big price movement is likely. Implied volatility has spiked to a three-month high, indicating market expectations for a breakout or breakdown from this tight range. For those expecting a bullish move due to strong iPhone 17 sales, buying February call options is a straightforward way to benefit. Recent research shows Apple’s smartphone share grew to 23% in the last quarter of 2025, which could help push the stock above resistance. If AAPL breaks past $262, options like the $265 or $270 calls would be appealing, aiming for the $275 area. On the flip side, if there’s a rejection at this resistance level, put options could profit from a downward movement. Worries about slowing services revenue or cautious guidance could trigger a drop to the $244 support. In this case, traders might look at February $255 or $250 puts to capitalize on a decline. Given the uncertainty around earnings, a volatility play might be the best strategy. A long straddle, which involves buying both a call and a put option with the same strike price and expiration, can profit from significant price moves in either direction. While this approach costs more due to high volatility, it avoids the risk of incorrectly guessing which way the stock will move. For a more defined risk strategy, traders can use credit spreads to bet on the stock staying within its current range during the earnings event. By selling a put spread below the $244 support and a call spread above the $262 resistance—known as an iron condor—traders can collect premium. This position benefits if Apple’s stock price moves less dramatically than what the options market anticipates. We saw a similar situation before the Q1 earnings report in January 2025. The stock rose before the announcement but fell afterward due to conservative guidance. History shows that post-earnings reactions often hinge on the company’s future outlook, not just last quarter’s results. This makes holding a directional bet through the report a risky yet potentially rewarding move.

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