Apple shares just hit a record. Here's how trader Mike Khouw is playing the move

📰 source: cnbc_topnews · 💼 business

apple shares hit a new record high, cementing its status as a market safe haven even as other tech names struggle. the stock has avoided the ai capex pain of hyperscalers and supply chain issues of chipmakers. earnings are due thursday after the bell, and options pricing implies a modest 3.8% move, with low volatility premiums. trader mike khouw suggests two approaches: for long holders, buying august $310 puts for $2.22 each (0.65% of share price) provides downside protection below $307.78. for those wanting upside without full equity risk, he recommends long calls or bull call spreads, given apple's 35x forward earnings multiple — its highest since 2007. the cheap options make both strategies appealing.

why it matters: apple's record high and cheap options offer rare asymmetric risk/reward into earnings for both hedgers and bulls.

source: cnbc_topnews
sentiment: +0.60 · impact: 0.40