Q2 STOCKS TO BUY

Analyst Doles Out Lofty Bull Note for FAANG Stock

The firm expects Apple to deliver 246 million iPhone units in 2022

Digital Content Manager
Aug 19, 2021 at 11:02 AM
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Apple Inc (NASDAQ:AAPL) is attracting some analyst attention today. More specifically, the FAANG name earned a price-target hike from J.P. Morgan Securities to $180 from $175, as the firm raised its 2022 iPhone unit deliveries estimate to 246 million units. The analyst in question expects "substantial upside" from the tech stock as a result of 5G upgrades to iPhone 13 and SE. At last check, though, the shares are down 0.2% at $146.02, falling victim to the broad market selloff.

Apple stock is fresh off an Aug. 17, all-time high of $151.68. What's more, the 40-day moving average has been a solid support for the security since June, and looks poised to contain this week's breather. Over the past 12 months, AAPL has added roughly 26%.

The options pits are firmly in the bullish camp. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 3.83 stands higher than 96% readings from the past year. In other words, long calls have been much more popular than usual in the last 10 weeks.

Plus, AAPL premiums can be had for a bargain at the moment. This is per Apple stock's Schaeffer’s Volatility Index (SVI) of 25%, which sits higher than 16% of readings from the past 12 months. What's more, its Schaeffer's Volatility Scorecard (SVS) stands at 98 out of 100, indicating the equity has exceeded options traders' volatility expectations over the past year -- a boon for buyers.

 
 

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