Apple appears stuck in market limbo after its post-earnings plunge, so how do you play a stock that doesn't seem to be going anywhere?
According to Mark Tepper, president of Strategic Wealth Partners, the tech giant's shares aren't a bad buy at current levels.
First of all, the stock's valuation has fallen sharply as the shares have slid, he points out.
Second, while the company may no longer be blazing new ground with each product cycle, Tepper contends that Apple's core business still looks strong.
"One of the main things I'm hearing right now is Apple is no longer revolutionary, they have become evolutionary — [but is evolutionary] really a bad thing?" he said Tuesday on CNBC's "Power Lunch."
"We look at toothpastes and Band-Aids, there's nothing revolutionary about toothpaste and Band-Aids, but when you look at Procter & Gamble, over the last 10 years Proctor & Gamble is up nearly 50 percent. Johnson & Johnson over the last 10 years is up nearly 100 percent," he said. "So even evolutionary companies, even if that's the case with Apple which I don't think is necessarily the situation here, can still make money."
Apple's first-quarter earnings report did usher in concerns its products may not be as appealing to consumers as in the past. The tech giant reported the first revenue drop since 2007, with slowing iPhone sales taking a major toll.
From the perspective of those currently holding the stock, there may be a way to use options to squeeze out profits.
Harvest Volatility Management's chief investment officer, Dennis Davitt, pointed out that by selling the 100-strike call and the 85-strike put, one can make an extra 2.5 percent in the stock. The downside is that gains above $100 will be forsaken, and below $85, one will be exposed to extra losses.
Still, if the stock remains stuck within a range, such a trade could be attractive.
"Even if the stock is locked up as dead money as these two forces battle it out, value versus liquidation, you can get additional yield out of this stock, hold it and get paid to hold it while I think the stock eventually goes higher," he said on "Power Lunch."
Apple closed at $93 on Tuesday, marginally higher than its $92 low from last week. That, in turn, was the lowest the shares have been in nearly two years.
Disclosure: Tepper's family and firm all own Apple; Davitt personally owns Apple.