Now that the majority of the so-called Magnificent 7 have reported earnings with mixed reactions, Apple (AAPL) is on deck this Thursday after the close.
Trading at over 26 times forward earnings, AAPL's valuation does not reflect the uncertainty with discretionary spending into the end of 2023.
Look to Alphabet's earnings where the market reacted poorly to the Google-parent's uncertainty around advertising revenue, a reflection of concerns around consumer spending.
The trade To play for a decline towards that level, I'm going to use a trade structure that I prefer for earnings when options are expensive.
This gives me an over a 2:1 risk to reward ratio on this trade if AAPL declines on earnings.
Organizations:
Google
Locations:
China, India