Derivatives strategist recommends call spread trade for a big Apple bounce post-earnings

Apple has become the red-headed stepchild of the Magnificent 7 in an AI-heavy market.

Jeff Jacobson, head of derivatives strategy at 22V Research, thinks the time is ripe to bet on a rebound in the stock that retail traders have been using as a source of funds for other opportunities in tech.

Ahead of the iPhone maker’s earnings report on Thursday, Jacobson recommends a call spread trade in Apple that offers exposure to a long-lived positive reaction to the company’s quarterly results and commentary.

His proposed trade:

• Buy Apple calls with a strike price of $262.50 that expire on February 20;

• Sell the same amount of Apple calls with a strike price of $285 and the same expiry.

When Jacobson initially made this recommendation in an email to clients, the trade could be put on for about $3.95; as of Monday’s close, that’s risen to about $4.27.

“What I particularly like about the setup for AAPL into earnings this quarter is the sharp pullback in the stock on both an absolute and relative basis heading into the report later this week (AAPL reports on 1/29 post-close),” he wrote. “Not only did we see a nearly 16% decline from the December (all-time) highs but shares also underperformed the market (SPX) by over 14% over that time. Now that the stock has already moved lower and underperformed, perhaps we can see a meaningful rebound once they report earnings?”

Apple is aiming to beef up its AI presence in 2026 after a host of management changes late last year, and is reportedly exploring the possibility of a wearable AI pin. The company seemingly has a solid base from which to innovate, with its now world-leading smartphone market share and its Services business supported by the 850 million weekly App Store users it counted at the end of 2025.

Wedbush Securities analyst Dan Ives called the Tim Cook-led firm one of his top 5 artificial intelligence stocks for 2026, despite its “invisible AI strategy.”