Agreed, the most conservative position right now would say
AAPL is fairly valued at market close price, so this should
provide the floor for next couple of days trading. There will
be pressure from those having written calls to pin the price
at 27-1/2 until option expiration. However, there has also
recently been an uptick in short position, and they now know
they will have to cover at this price OR HIGHER. So, there
is also a potential for a short squeeze. I think the real question
is will the news generate any buyer interest in the next couple
of days among institutions. If so, the MM won't be able to pin
price at option level, shorts will get squeezed, and price will
bob up with support at 30, highest option level. If not, we will
likely be pinned at 27-1/2 until options expire, and see a move
upward on Monday.
So, my April 30s might be worth something tomorrow, or they might
not ;-)
But my stock and April 27.5's should do OK.
JMO |
