These little ups and downs were predictable but hard to time so I pretty much ignore them.
Options Market Sees Big Move From Apple After IPhone Event
The options market is pricing in a bigger-than-usual move in Apple Inc. AAPL -0.71% shares ahead of the
company’s Tuesday event at which the latest iPhone should be unveiled.
On Tuesday, Apple is expected to show off the latest versions of its smartphone, likely with larger screens,
and as well as a wearable device.
Shares fell 0.8% to $98.20 in recent trade. Shares have declined 4.2% in September but have gained 22.5%
in 2014. The company underwent a 7-for-1 stock split in June.
Apple options were among the most active on Monday, according to Trade Alert data.
The options market is implying about a 4.25% move in either direction on Tuesday, according to Max
Breier, a senior trader on the equity derivatives desk at BMO Capital Markets.
In comparison, Apple shares closed 2.3% lower after the release of the iPhone 5S and 5C on Sept. 10, 2013.
After the Sept. 12, 2012 release of the iPhone 5, shares closed 1.4% higher.
“This is the most excitement I’ve seen, in terms of what options are pricing in, in quite some time,” said Mark
Sebastian, founder of Option Pit.
More at: blogs.wsj.com
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