Intermediate Trade: Apple

Apple's (AAPL) action today is covering up what appears to be a pretty ugly Wednesday. The Russell 2000 is off more than 1%, and the Nasdaq and S&P 500 are down despite AAPL being up 4.5%. Thus, I am wary that there is going to be a lot of great follow-through.

It is so cheap now to play AAPL to back off from today's highs. I can buy the August 155 puts for $1.88 and sell the 148 puts at $0.38, a seven-point vertical for about $1.50. That is a dirt cheap trade given how hard AAPL has moved today....28 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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