Apple Computer (AAPL) is up $12.84 to $612.25 in active trading of more than 11 million shares after the Wall Street Journal reported on a possible MiniPad, or a tablet with a smaller screen than the existing iPads (LINK). Shares are rallying and options volume on Apple through midday is more than a half milloin contracts. 335,000 calls and 214,000 puts so far. 45 percent of the flow, or 245,000 contracts, is in the Weekly options that expire after tomorrow. 605, 610 and 615 calls are the most actives, as some players seem to be anticipating the momentum to continue through the weekend. Another 38,000 of the Weekly 7/13 contracts traded. Therefore, more than half of the total volume in AAPL options today is in weekly contracts. Meanwhile, 30-day ATM implied volatility is options on Apple is up 6.5 percent to 26.5, which places it in the 20th percentile of the 2012 range (46 and 17). The company will report earnings the afternoon of July 24, which is after the July expiration.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.