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Trading Apple as it Approaches Bear Territory

Friday, 2 Nov 2012 | 1:12 PM ET

With Apple's share price down 16 percent from its all-time high Friday, the stock is now approaching bear territory. CNBC's "Fast Money" pros weighed in on how to play it.

OptionMonster.com's Jon Najarian said that the stock could be a bargain at current levels.

  Name Price   Change %Change Volume
AAPL
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"I think it provides great trading opportunities," he said, adding that he has not traded it since Thursday.

(Read More: Microsoft Leads Tech Rally, But Is it Done?)

"I'll point out that it hasn't broken the 200-day moving average and closed under it since Nov. 25 of last year," he added.

Apple in Correction Mode
Discussing whether the iPad mini will bring momentum back to Apple, with the FMHR traders. Could Apple actually enter bear market territory?

At that level, the stock "popped over 3 percent the next day," he said.

Najarian said he would be looking for "stabilization at this level," noting that Apple shares dropped to $588 on Wednesday and then rebounded above $600.

The stock would be considered to have entered bear market territory once it's down 20 percent or more.

"It's a bit surprising, quite frankly," said OptionMonster co-founder Pete Najarian, who added that the stock still appeared healthy.

"When you're looking at it from a valuation perspective, the cash flows and all the rest of it, obviously it's still a company most people would like," he said. "I'm looking very closely as it's resting on this 200-day. It's a bit concerning right now, but I don't know that I'm too concerned yet."

Najarian said he thought that a lot of the selling pressure on Apple came as the S&P 500 broke the 1,450-1,460 levels.

"When people are losing in one area, they're going to take off some of the winners," he said.

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