Apple (AAPL) Volatility Spike on Margin Hike

| December 5, 2012 | 0 Comments More

Apple is down $24.74 to $551.11 and revisiting the $550 level today on heavy volume of 13.5 million shares after COR Clearing raised margin requirements on the stock to 60 pecent from 30 percent (Link to Report). CNBC is reporting that other firms, Lazard, Morgan, and JPM, are not planning to follow COR’s lead. Yet, AAPL is on a two-day 5.3 percent losing skid and also being weighed down by concerns of market share losses after IDC said Android is expected to dominate smartphone sales from 2012 to 2016 (Link to Story) and that Apple’s share of the tablet market has seen a decline to 53.8 percent in 2012, from 56.3 percent in 2011 (More Details). On the options front, Apple sees very brisk trading. 309,000 calls and 222,000 puts so far. The ten most actives are Weekly options that expire 12/7 and nearly half of the flow (260K contracts) is in the Weekly (12/7) expiration term. Weekly 570 calls and 560 puts are the most actives. At the same time, implied volatility in Apple options, as measured by VXAPL Index, is ripping 5.78 points higher to 40 and its best levels of the day.

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Category: All Stocks, Large Cap Stocks, Technology Hardware & Equipment

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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.