Apple Inc. (AAPL) "Is Not in the Epicenter of AI Right Now," Veteran Investor Says

Asserting that Apple Inc. (AAPL) "is not in the epicenter of AI right now" and is "facing some considerable challenges," TheoTrade founder Don Kaufman reported on Schwab Network that he was utilizing a bearish options strategy on Apple Inc. (AAPL).

Kaufman explained his options strategy on the network, while Rick Ducat, Schwab's Lead Market Technician, analyzed Apple's technical status during the same segment.

Kaufman's Bearish Options Play on Apple Inc. (AAPL)

In view of Apple Inc. (AAPL)'s negative catalysts, the shares are likely to fall under $200 when the stock market retreats, Kaufman said. As a result, he reported that he was buying $200 puts and selling $195 puts on the name.

All of the relevant options expire on July 8, he noted, adding that he will pay net premiums of $1.05 on them.

Although Kaufman said that he's keeping a lid on his risk, the investor noted that he is betting that the shares will fall to $195.

Ducat's Technical Analysis

AAPL stock has managed to "break out of its downward channel" recently, but it has made a "series of lower highs in recent weeks, Ducat said. Meanwhile, the shares are near their 63-day exponential moving average, and all of its moving averages "are moving sideways and clustered," the technician reported.

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.