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FAANG Stock Falling on Reports of New Headphones in the Works

AAPL options traders have been leaning towards the bears' camp in recent weeks

Managing Editor
Mar 5, 2018 at 9:51 AM
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Technology giant Apple Inc. (NASDAQ:AAPL) is making headlines amid reports it's working on a high-end version of noise-canceling, over-the-ear headphones, which could be launched as early as the end of this year. However, shares of the FAANG stock are trading 0.8% lower at $174.80 out of the gate today, as some speculators worry the headphones will cannibalize Apple's Beats by Dre line.

Looking broader, AAPL stock is up 25% year-over-year, and most recently touched a fresh record high of $180.61 on Feb. 28. Despite its outperformance on the charts, AAPL options traders are wary. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows AAPL with a 10-day put/call volume ratio of 0.69, ranking in the highest percentile of its annual range. This indicates Apple puts have been bought to open over calls at a much faster-than-usual clip in the past two weeks

Nevertheless, AAPL has rewarded premium buyers over the past year. The stock's Schaeffer's Volatility Scorecard (SVS) stands at a lofty 86 out of 100, indicating the shares have exceeded options traders' volatility expectations in the past 12 months.

 

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