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Apple Stock Sinks on Ive Exit

Put open interest is unusually heavy on AAPL right now

Managing Editor
Jun 28, 2019 at 10:55 AM
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Tech powerhouse Apple Inc. (NASDAQ:AAPL) is inching lower this morning, down 0.6% at $198.60, after the company's design chief, Sir Jony Ive, announced he is stepping down from his role later this year. Ive obtained his position in 1996, overseeing the financial and design turnaround of many memorable products. Current CEO Tim Cook noted Ive's "role in Apple's revival cannot be overstated." Ive said he is leaving to start a creative firm called "LoveFrom," with Apple as its first client. 

Apple stock has had quite a volatile year on the charts, most recently struggling to break above the $200 ceiling after briefly pulling back near $170, when news surfaced of a potential Department of Justice (DoJ) antitrust probe. Either way, the tech giant remains 25% higher year-to-date, and nearly 40% above its early January lows.

Looking at options data, there seems to bee a heavy preference for puts over calls. Specifically, Apple stock's Schaeffer's put/call open interest ratio (SOIR) of 1.26 ranks in the 90th annual percentile -- signaling an unusual put-skew among short-term traders.

Regardless, AAPL has shown a tendency to make bigger moves than options traders were expecting over the past 12 months. This is based on its Schaeffer's Volatility Scorecard (SVS) of 99 (out of a possible 100).

 

 

 

 

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