Apple reports Q4 results November 2

What's Happening

Tech titan Apple ( AAPL ) will release its fiscal fourth-quarter results after the market close on November 2. The company is expected to post earnings of $1.86 per share, up from $1.67 during the same period last year, and the stock is up 35.4% on the year.

Technical Analysis

AAPL was recently trading at $157.31, down $7.63 from its 12-month high and $53.23 above its 12-month low. Technical indicators for AAPL are bullish and the stock is in a strong upward trend. The stock has recent support above $152.50 and has recent resistance below $160.90. Of the 29 analysts who cover the stock, 18 rate it a "strong buy", five rate it a "buy", four rate it a "hold", and two rate it a "strong sell". AAPL gets a score of 78 from InvestorsObserver's Stock Score Report.

Analyst's Thoughts

Apple has been a top performer over the last year, and the stock is currently trading near a record high ahead of the upcoming quarterly report. Apple has an excellent earnings track record, posting better than expected profits in each of the last five quarters, and higher than expected sales four of the last five quarters. iPhone sales continue to drive the company's top and bottom lines, and iPhone sales will once again be the primary focus for investors. Apple has already started shipping its new iPhone 8 models, and the iPhone X pre-order date has finally arrived, but with limited supplies, iPhone X customers may not get the phones in their hands until 2018. The market will certainly pay attention to the company's overall profit and sales, but the stock action following the report will mainly be driven to how well the iPhone sales numbers are received. I expect a good quarter, and the stock to move higher following the report. The consensus calls for earnings of $1.86 per share, and the street has a whisper number of $1.93.

Stock Only Trade

If you're looking to establish a long stock position in AAPL, consider buying the stock under $157.50. Sell if it falls below $141.75 or take profits if it gets to $181.00.

Bullish Trade

If you want to set up a bullish hedged trade on AAPL, consider a January 130/135 bull-put credit spread for a 45-cent credit. That's a potential 9.9% return (42.5% annualized*) and the stock would have to fall 13.9% to cause a problem.

Bearish Trade

If you want to take a bearish stance on the stock at this time, consider a January 180/185 bear-call credit spread for a 40-cent credit. That's a potential 8.7% return (37.3% annualized*) and the stock would have to rise 14.7% to cause a problem.

Covered Call Trade

If you like the stock, but wish to lower your cost basis on a new position, you may want to consider a January $160.00 covered call. Buy AAPL shares (typically 100 shares, scale as appropriate), while selling the January $160.00 call for a debit of $151.50 per share. The trade has a target assigned return of 5.6%, and a target annualized return of 24.4% (for comparison purposes only).

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