GO
Loading...

Trading Apple as it Approaches Bear Territory

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.

Symbol
Name
Price
 
Change
%Change
Volume
AAPL
---

"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.

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.

______________________________________________________
Got something to to say? Email fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published online, email fastmoney@cnbc.com.

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET