Apple (AAPL) drops $3.11 to $499.57 and Jan 500 calls on the stock are today’s most actively traded equity options contract heading into the expiration, with more than 67,000 traded. Volume in the Jan 500 puts is 44,000 contracts. The Jan at-the-money 500 straddle is now trading at $2.60 and has combined open interest of 66K. The largest OI positions in Apple, however, are the expiring Jan 600 and 650 calls, which have now fallen deep out-of-the-money after the stock’s slide from the highs of more than $700 seen in September. Also, unlike the broader market where implied volatility has been trending lower (VIX @ 12.5 today and new multi-year lows), IV in Apple, as measured by VXAPL, is up .35 to 43.43 and well off the lows of less than 19 seen in mid-August.
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.