I Dont understand why youre all soo confused! The market has pulled back to an EPIC LOW of 183, just yesterday!!
Cmon, you had your day less than 24 hours ago, why are you sad already?! Hahahahhaa
But im arguing that IV isnt a correlation to stock PRICE, but movement MOMENTUM. Aka, the stock is expected to move huge (both up or down) the LEAST since 2011. Thats what you are analyzing.
You cannot put any correlation on PRICE and VOLATILITY.
That being said, I do agree that the LOW volatility is suggesting that a breakout MAY occur. And IMO, that will be to the UPSIDE, due to technicals (cup and handle, over all uptrend still intact, etc), AND fundamentals (Record Revenues, dividend growth, buy back, etc).
Man.....the intuition is RIGHT, but WRONG at the same time. Implied Volatility is the "expected" volatility for options. This is how the PREMIUM in the option is priced. That being said, a LOW IV typically means the stock is not "expected" to move a a bunch.
Your wrong when u correlate a high IV to a drop in price, or a low IV to a rise in price.
Does that make sense?
Whats ridiculous about it? The market is BARELY up from 2000 and 2007 highs. This is just the beggining my friend
Trust me, this is false.
Check out my Flickr page for some DSLR images. No phone can ever do that...
Wow, pull up a decade chart from BigCharts. We are sitting at the low end of the HANDLE. Actually, the 26th was most likely the low point lol. Moving much higher folks...keep a 1 year horizon, and youl be golden.
Again, if you are a call buyer of OUT THE MONEY options, OR expiring within THREE MONTHS, you will LOSE BIG. Buy ITM, atleast SIX months out, or buy shares.
Sentiment: Strong Buy
Trading flat for 2014. Wiping out put buyers. U better close them all tomorrow homie.
Long term buyers like my self will win huge with AAPL
The risk here is if the stock DOES get hit, then the losses could be greater than the premium collected from the covered call. However, I believe that 500 is a base, and would even be a seller of the 480 July puts
Very interesting. I think a stock split makes a lot of sense, espcially since it would make AAPL eligible for being placed into the DOW30. That would be very bullish both short and longterm.
Agreed. Sell off is over, I think we trade flat tomorrow, killing both call and put buyers. Buy shares, or long term calls to win in this game. Im in with shares, and 525/550/575/600 calls for April, July 550/575, and October 525 calls. Good luck!
Ouch, thats a pretty bad mindset. AAPL should be able to pierce 550, 570 and then 600 is what Id worry about..SHORT term...