A bearish options trade on Apple as stock struggles to keep up with broader market

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Tony Zhang updates the winning trade he made in September.

Back in late September, I laid out a bearish thesis on Apple and the trade expired last Friday and resulted in a 100% gain. With recent developments and persistent challenges, it is time to re-engage this bearish view. Apple continues to face significant headwinds, with disappointing iPhone 16 sales, growing competition in augmented reality, and underwhelming progress in artificial intelligence .

is poised to retest the lower end of its range near $215. A break below this level could lead to further downside in the coming weeks. 's potential downside, consider selling a Dec 27 $230/$240 Call Vertical at a $3.65 credit. This entails: Selling the Dec 27 $230 Call for $5.40 Buy the Dec 27 $240 Call for $1.75 This trade allows you to profit if

 

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