A Schwab Network commentator unveiled a bearish, short-term option play on Apple (AAPL), while a guest on the same segment expressed bullishness about the stock market’s outlook.
A wide view of an Apple store, showing the range of products the company offers.
A Bearish Options Trade on AAPL
“Apple has the most exposure to tariffs” among large tech stocks, Schwab commentator Tom White said. He noted that the company’s products are manufactured in a number of countries that were hit with significant tariffs, including India and Thailand.
Further, he pointed out that the company’s AI initiatives have not borne much fruit, while its valuation “is still pretty rich.”
White suggested buying April 17 puts with a $205 strike price and selling $190 puts with the same expiration date.
Traders will pay a net premium of $4-$5 and have a break-even point of around $200, White reported.
A Veteran Investor Is Bullish
Investors received “certainty” about tariffs yesterday, and companies can find ways of keeping their margins elevated, despite the tariffs, said James Demmert, founder and Chief Investment Officer of Main Street Research. What’s more, the bull market, driven by “AI tailwinds” is still intact, and price-earnings ratios have become more attractive, he stated.
While we acknowledge the potential of AAPL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
