Followers | 679 |
Posts | 141060 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Thursday, March 15, 2018 8:15:11 AM
By: Schaeffer's Investment Research | March 14, 2018
All three stocks are now staring up at familiar resistance
Apple partners Skyworks and Qorvo have huge exposure to China
Escalating concerns about a trade war with China are weighing on industrial stocks, and have the Dow lower in afternoon trading. However, while many traders fear Beijing could single out Boeing (BA), in particular, for retaliation, Apple Inc. (NASDAQ:AAPL) and several of its suppliers could also take a hit. According to data from Goldman Sachs, Apple suppliers Skyworks Solutions Inc (NASDAQ:SWKS) and Qorvo Inc (QRVO) have the biggest sales exposure to China, accounting for 85% and 75% of revenue, respectively, with AAPL also making the top 20.
AAPL FACES HURDLE AT $180
The shares of AAPL were last seen 0.7% lower at $178.74, after touching a record high of $183.50 yesterday. It seems the stock's breakout north of $180 was a fake-out, and this level could re-emerge as resistance in the short term. Not only did it stifle Apple stock's upward momentum in January and late February, but it's also the site of heavy short-term call open interest.
In the soon-to-be front-month April series of options, the 180 strike is king, with nearly 40,500 calls outstanding. This abundance of bullish bets at the round-number strike could translate into an added layer of options-related resistance for AAPL shares in the coming weeks.
In today's trading, meanwhile, the March 180 call has attracted the most attention, with more than 36,000 contracts exchanged. It looks like some speculators are buying to open the calls, expecting Apple stock to retake the $180 level by the end of the week, when front-month options expire.
SKYWORKS STOCK BELOVED BY ANALYSTS
Skyworks Solutions stock has shed 0.5% to trade at $111.48. While SWKS shares have been on fire since the early February stock market correction, they're now facing off against a familiar area of resistance. Specifically, the $110-$115 neighborhood contained the equity's upward momentum in mid-2015, and reappeared as a roadblock in mid-2017.
Should the fears of a Chinese trade war come to fruition, SWKS stock could be at risk for a flood of negative analyst notes. Currently, 20 out of 23 analysts offer up "buy" or better endorsements, leaving the door wide open for potential downgrades. Likewise, the consensus 12-month price target of $118.53 is in uncharted territory for Skyworks stock, suggesting price-target cuts could be on the horizon, should the shares back down from resistance.
Options traders looking to speculate on SWKS' short-term trajectory can do so at a relative discount, though. The stock's Schaeffer's Volatility Index (SVI) of 28% is higher than just 19% of all other readings from the past year, pointing to relatively muted volatility expectations being priced into near-term options.
QRVO OPTIONS ON SALE
Qorvo stock is taking the biggest hit this afternoon, down 1.8% to trade at $81.94, possibly due to the company's exposure to the defense and aerospace sectors. Like Apple and Skyworks shares, QRVO stock is also doing battle with a former foe on the charts. Specifically, the equity is staring up at the $84-$88 neighborhood, which contained a rally to record highs in 2015.
As with its sector peers, Qorvo options are a relative bargain right now. Speculators looking to purchase near-term options should cheer QRVO's SVI of 32%, which is in just the 18th percentile of its 12-month range.
https://www.schaeffersresearch.com/content/analysis/2018/03/14/apple-suppliers-on-watch-amid-trade-war-fears
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Recent AAPL News
- Jobs Data, Apple Earnings Contribute To Extended Rally On Wall Street • IH Market News • 05/03/2024 08:25:49 PM
- Jobs Data, Apple Earnings May Lead To Extended Rally On Wall Street • IH Market News • 05/03/2024 01:09:33 PM
- Apple reports second quarter results • Business Wire • 05/02/2024 08:30:00 PM
- U.S. Stocks Rally Amid Easing Worries About Possible Rate Hike • IH Market News • 05/02/2024 08:20:39 PM
- Alphabet CEO’s Billion-Dollar Wealth, Microsoft’s $1.7B Indonesia Investment, and More News • IH Market News • 04/30/2024 11:58:40 AM
- Philips Stocks Soar 47% Following US Deal, Tesla Bolsters Presence in China, and More News • IH Market News • 04/29/2024 11:11:24 AM
- BHP Bids $38.8 Billion for Anglo American; Biden Unveils Historic Micron Technology Deal, and More News • IH Market News • 04/25/2024 11:48:40 AM
- Coca-Cola and Microsoft Sign Billion-Dollar Agreement, Apple Event Set for May 7, and More News • IH Market News • 04/24/2024 11:28:02 AM
- AKT Token Skyrockets on Upbit Listing, IBIT Holds Strong in Top 10 ETFs, and More Crypto News • IH Market News • 04/23/2024 04:34:08 PM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- Li Auto Stock Drops 7.3% Amid Tesla Price Cuts, Salesforce Retreats from Informatica Deal, and Other Market Updates • IH Market News • 04/22/2024 12:09:21 PM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Ericsson Soars with 66% Net Profit Growth; Live Nation Under Antitrust Scrutiny in US, and More News • IH Market News • 04/16/2024 11:18:19 AM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Boeing Down in Pre-Market Due to CEO Developments and Denver Incident; MicroStrategy Surges 11% with BTC Spike, and More • IH Market News • 04/08/2024 11:17:49 AM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM