AAPL Vol Was WAY Too Cheap Into Earnings

AAPL had earnings,  and whether you thought it was going up or down there is one thing that seemed off,  vol was low into earnings.  The AAPL straddle was prcing in a move slightly over 4$.  That seemed low to us at option pit.  Well...we were right take a look at where the 104/105 strangle went out that expires NOT just this Friday, but on Friday May 27th.  The straddle was about 60% too cheap or more.


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SPX Traders Might Not Be Panicking...BUT AAPL Traders Might Be Getting Close

The comment out of many 'pundits' is that the SPX while selling off, has been quite orderly.  I mean,  here we are down 100 points in 4 days and the VIX is barely 25%.  That said,  there is one area of the market that is a bit panicky...aapl investors.  Check out the way AAPL vol has completely outpace the trajectory of SPY IV30 over the last couple of days. (AAPL IV30 in red  SPY IV30 in blue)

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Option Pit Trade Idea of the Week: Bitting a Bad AAPL

Sound did not work, I ended up buying the Oct23 110 put for 1.04 I like it because IV is low and because I think aapl is going to move toward 108 next week. Mostly because its underporforming the market badley
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Content is King Another CHEAP STRADDLE

So far this earnings cycle we have seen big wins in tech out of GOOG, NFLX, and no AMZN.  Flops have come from AAPL, IBM, and MSFT.  Take a look at the pricing of AMZN from today (now up about double the straddle price).


Livevol (r) www.livevol.com

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