Bearish Trade On Apple Could Return 23% In Less Than 7 Weeks

With stocks plunging on recession fears and the 12% drop in the Japanese Topix index, we need to be a bit more strategic with our option trades. Apple (AAPL) dropped below the 50-day moving average Monday, and could be a good candidate for a bearish trade. This can also act as somewhat of a hedge on a long-term stock position. Today, I'm looking at a bear call spread on Apple stock. A bear call spread involves selling an out-of-the-money call and buying a further out-of-the-money call. The strategy can be...