Apple’s up 43,000 percent since its IPO, and could soon surpass $1 trillion in market cap

Apple just celebrated a new milestone – 37 years since its IPO.

Apple made its Wall Street debut on Dec. 12, 1980, at $22 per share, or 39 cents split adjusted, and since then the stock has gained more than 43,600 percent to trade near $172 on Tuesday. For reference, the S&P 500 is up just shy of 2,000 percent, while the Dow is up roughly 2,500 percent and the Nasdaq has rallied more than 3,000 percent during that time.

According to Todd Gordon, founder of, the stock looks as though it could soon be crossing another major level — $1 trillion in market cap.

Looking at a chart of Apple, Gordon noted that a parallel uptrend channel has formed over the past year. As the bottom line continues to serve as support, Gordon believe that the stock could soon reach the top of the channel at $190 in the next few months.

"You'll see that we'll likely greet that ceiling somewhere around the $190 region, which that will put Apple at that $1 trillion valuation," he said Tuesday on CNBC's "Trading Nation." "So the way I look at this chart is we have a chance to move up. We are a little bit in the middle of this channel, meaning we're not down at support, we're not up at resistance. So what I'd do rather than buy options to get bullish, I'd like to sell options also to be bullish."

To play for the move higher, Gordon recommended selling the January 19 weekly 170/165 put spread collecting $1.48 or $148 per options contract. This is a bullish strategy that allows Gordon to see profits if the stock rallies, stays where it is, or even falls slightly.

"We do have a skewed reward to risk ratio, but being that we have profitability all the way down another couple dollars below us, we have a high probability of success," Gordon said.

As a result, he advised traders stop out of the strategy at $165, as that is also the bottom end of the parallel channel that he initially established on the charts.

"If we do break through the $165 area between now and January expiration, we will have some premium remaining, and we will get out of that trade," he said.

Apple is currently up more than 48 percent year to date.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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