For many Apple investors, 2013 has been a year they would rather forget. Shares of Wall Street’s iconic former tech darling have fallen over 27 percent so far year-to-date, falling past the psychologically important $400 level last week on weak supplier numbers.

Shares slid nearly 13 percent last time the company reported earnings, despite beating earnings per share estimate and announcing The company declined to provide an EPS estimate for the Q1 2013, based on the fact that they didn’t know how many shares would be outstanding, because they ‘didn’t know how many shares they would repurchase.’

RECAP OF LAST WEEK’S ACTION

Last week, shares plummeted 5.5 percent prior to closing below $400 for the first time since December 2011 on revised guidance from chip manufacturer Cirrus Logic.

Cirrus supplies analog and audio chips for the iPhone and iPad, and more than 90 percent of its business comes from Apple. In their earnings call, Cirrus warned of ‘reduced product forecast’ from an unnamed customer, leading Apple to shed over 22 billion in market cap.

RUMOR MILL

Given the negative press surrounding the company, it should come as little surprise that rumors of CEO Tim Cook being ousted have surface. In today’s earnings call after market close, Apple is expected to report its first decline in revenue in nearly a decade. The low expectations appear to be contagious, with many analysts expecting the company to lower its outlook for the current quarter on soft iPhone/iPad sales.

LOOK AT THE BIG PICTURE

Despite this incredibly weak sentiment, the company has a number of things working in its favor. The company is poised to capitalize on growth markets like China and Brazil, and is still sitting on a massive $137 billion dollar cash hoard. While pundits have decried a lack of innovation, many believe that the company will release a TV late this year.

BUY SPOT

As shares approach the $350 level, we should expect to see buyers re-enter the picture.

The price of the near-term straddle is indicating a 7% move following today’s earnings call.

MY TRADE

Selling the AAPL Jan 360-340 Put Spread for $7.60

Risk: $1240 per 1 lot

Reward: $760 per 1 lot

Breakeven: $352.40

THE GREEKS

Delta: Long

Gamma: short

Theta: Long

Vega: Short