Here's why Apple's run could take a timeout: Carter Worth

Apple's stock keeps making fresh all-time highs, but according to one of Wall Street's top technicians, the run could soon take a breather.

"Apple is likely to become somewhat fallow here," said Sterne Agee's Carter Worth on Friday's Options Action.

Worth pointed out that since hitting a high in September 2012, the tech giant's stock has declined 50 percent, then broke its downtrend, and subsequently regained its losses to form what's called a cup-and-handle pattern.

"Ultimately this kind of set up projects to the past top, where we are now. And, in principle, a stock that gets back to a well-defined past top before being able to exceed that top, responds to it."

That's because, according to Worth, when this pattern forms, investors who bought at the previous top, and subsequently lost money, may look to exit the stock upon recouping their losses. That selling action could lead to some sideways trading.

Read MoreThe best & worst of the S&P 500 since 1K

In other words, while Worth, a longtime Apple bull, doesn't think you should sell Apple, he thinks the recent price action suggests the stock may not go anywhere anytime soon.

Interestingly enough, while Apple may have returned to its previous high, the stock's actually more expensive this time around on a valuation basis.

"The stock was very cheap," said Dash Financial's Mike Khouw. "You can't really say that anymore. It's trading at about 12.5 times next forward earnings."

So how's Khouw planning on making money off this tech giant?

"This is probably one of the most common options trades there is, and probably the most successful over time. If you own a stock you look to sell a call against it."

Specifically, Khouw looked to sell the November 105-strike call for $3.30.

—By CNBC's Amanda Diaz

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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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