What Is Driving the Bullish Sentiment Around Apple Stock?

As Apple Inc. (AAPL) navigates its recovery, the sentiment regarding its stock is shifting towards bullish territory, post-earnings report. This optimism comes after a period of decline driven by concerns over iPhone demand, but improved forecasts have created a more favourable outlook for traders and investors alike.

What Factors Are Contributing to the Change in Narrative?

The narrative around Apple began to turn after the company released its recent earnings report, revealing stronger-than-anticipated resilience in demand, particularly in Asian markets. According to market analyst Nishant Pant, the stock experienced a drop of approximately 16% from December 1 through early January, mainly as a result of headlines focusing on disappointing sales figures for the iPhone. However, management's indications of a more positive March quarter have helped ease these concerns, leading to a rebound in stock value.

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How Can Traders Position Themselves?

For those looking to capitalize on this shift without overextending their capital, Pant recommends using options trading strategies like a bull call spread. This strategy involves buying a lower strike call option while concurrently selling a higher strike call option, providing defined risk and potential reward. Here’s the proposed structure:

• Buy $265 call, expiring on February 27: This serves as the in-the-money option.
• Sell $270 call, expiring on February 27: This acts as the out-of-the-money option.
  

The maximum profit is achievable if Apple's stock closes at or above $270 at expiration, reflecting an attractive risk/reward ratio, where an investment of about $250 could yield a profit of nearly $250 if the trade is successful.

What Technical Indicators Support This Bullish Outlook?

Various technical indicators provide further confidence in Apple's potential rebound:

• MACD (Moving Average Convergence Divergence): The MACD reading, which flipped positive since January 26, indicates building upside momentum.
• RSI (Relative Strength Index): Following a period of deep oversold conditions, the RSI has increased significantly, supporting the outlook for a bullish reversal.
• Exponential Moving Averages (EMAs): The 8-day EMA is trending upward and is expected to cross above the 21- and 34-day EMAs, which traditionally signals favourable “buy-the-dip” conditions.
  

By employing these analyses, traders can make more informed decisions regarding their investments in Apple stock.

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Key Takeaways

• The narrative is turning bullish on Apple after a significant decline due to past concerns over iPhone sales.
• Strong post-earnings forecasts, particularly regarding demand in Asia, are fostering a more favourable outlook.
• Traders can utilize bull call spread options to effectively manage risk while participating in potential stock recoveries.
• Positive technical indicators such as the MACD, RSI, and EMAs bolster the case for upward momentum.
  

To see how this data impacts your investments, read our latest market analysis.

References

[^1]: Nishant Pant (2026). "The narrative on Apple is turning bullish. How to trade the iPhone maker with options (https://www.cnbc.com/2026/02/03/the-narrative-on-apple-is-turning-bullish-how-to-trade-the-iphone-maker-with-options.html)". CNBC. Retrieved February 3, 2026.

Keywords: Apple, AAPL, bullish options trading, stock market, technical analysis, investment strategies.

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