$AAPL · Schwab Network · 2026-10-30

Joining us for an in-depth discussion on Apple is Fast Money co-host and senior options contributor Tom White. Yes Diane, the first chart we're going to look at for Apple shows that the share price has increased by about 125-126% in the last 5 years.

You can see here that this stock has done really well. We saw some stability in 2023, 2024, but now we are seeing an upward trend.

So, really good returns for Apple ahead of earnings results. If we look at the chart more closely, we can see that Apple has achieved a growth of about 28% on a 1-year basis or until 2026 , as per yesterday's closing price.

We are now at around $345, but we need to watch some key levels before the earnings report because it is quite high compared to historical valuations, but they are doing well due to the growth in supercycles and service revenues.

We have the 50-day simple moving average here, which is sitting at around $332. This could be an area of support in a downtrend. We will keep an eye on that. We haven't dropped below this level since August.

Now if you look at momentum and Apple's performance over the last 12 months, we are above 50, around 61 according to the RSI. Therefore, this cannot be called overbought in any way.

Every time it rises above the 70 level, which is considered overbought, it drops back down very quickly from there.

One of the key points is that we are close to the all-time high of around $351.73 that we touched last week. So, keep that in mind. Will we reach new heights with this report ?

A reference point in the downtrend is around $311. This will be a strong area of support, which we need to keep an eye on.

Looking at the 50-day moving average, we see that there is a volume node there. This will be an area of support around $332 to $337. So, we will keep an eye on that.

We are now in an uncertain situation when it comes to resistance or obstacles. Keep an eye on that all-time high, which is about $6.50 above the stock's potential starting price of $345.

I used the weekly options for November 6th here. I've been looking for something where I can trade on a bias, like buying a call if it's bullish or a put if it's bearish. However, I would like to reduce the cost of buying bullish calls a bit, because the implied volatility is much higher due to risky events like earnings reports.

So, I have chosen a bullish call vertical approach here. If you think the stock will return to its highest price and set a new record. You are optimistic. So, I will buy the in-the-money 340 call.

This is the bullish part of this call vertical, right? It has a high delta, it reacts much like a straight stock. On the contrary, I will sell the 355 strike call. So, this is a $15 gap bullish call vertical.

I have to pay a debit of about $6. It may be a little too much. When I saw this, the stock was trading at around $342. It could be around $7. However, the debit you pay will be your risk.

That is, about 600 dollars. And this will bring your break-even point to $346. This is only 1 percent higher than the current share price. So, you don't need a huge change to get above break-even.

Now , why did I choose the 355 call for sale ? The November 6th weekly options expire next Friday, with the share price expected to be around $15. So, that's how I came to the decision.

The cost is being adjusted slightly by selling 355 calls against the 340 calls you purchased. As I said, the break-even point of $346 is only 1 percent above the current price and is within one standard deviation of the current valuation of the options market.

So if you are bullish, but you think the stock will go back to its highest price , then this trade could be profitable for you. Where there is a chance to earn $900 by risking $600 , Diane.