I believe Apple Computer (aapl) call writers may be manipulating aapl's stock price to keep weekly Chicago Board Options Exchange (CBOE) calls out of the money and artificially depressing aapl's stock price.
The CBOE aapl weekly options have become a tool for massive manipulation. It is a brazen ponzi scheme that rivals the Madoff scandal.
Let me explain. No matter what happens in the stock market on recent options expiration Fridays; aapl's stock price has closed down dramatically. The effect is to eliminate as many calls in the money as possible. These are weekly options expiration Fridays
This pattern has become clear to many who trade the stock. It is a pattern and practice that fraudulently distorts the price discovery mechanism for the stock to depress the value of the stock and renders worthless practically all weekly call options purchased.
As one bit of evidence of the cumulative effect of many such Fridays on long term retail investors, the stock trades today at a substantial and irrational discount to its growth rate, a .53 peg. IBM and Cisco trade at peg of close to 1.2. xom trades at a 1.54 peg.
While Apple's (aapl) revenue and earnings have absolutely skyrocketed over the past few quarters -- it reported 92% growth in its recently ended fiscal Q2 alone --its stock price has barely advanced since reaching $320 in late October. Friday, the stock closed at $326 on Friday or hardly any higher than where it was trading at over 9 months ago as a result of the manipulation.
The NASDAQ-100 (qqq), by contrast, has outperformed over the same time period. The stock hasn't even been able to outperform the NASDAQ-100 despite trading at the cheapest relative valuation of the group and posting almost the highest net income growth rate surpassed by only a handful of stocks with lofty valuations. Even the broader S&P 500 (spy) has outperformed Apple since October.
To reiterate, the issue is cumulative stock manipulation that has damaged investors in the stock