Apple Stock Brushes Off European Commission Tax Appeal

The equity is still up over 99% year-over-year

Digital Content Manager
Sep 25, 2020 at 10:46 AM
facebook X logo linkedin


The shares of Apple Inc. (NASDAQ:AAPL) are up 1.3% at $109.68 at last check, despite news that the European Commission is appealing a court ruling that dismissed the technology giant from paying $15 billion in taxes in Ireland. At the time, the Luxembourg-based General Court said competition enforcers had not met the requisite legal standard to show that the company had enjoyed an unfair advantage. In response, Apple officials reinforced earlier this morning that the company has always complied with Irish tax laws.

On the charts, the security has been cooling off from its all-time-high of $137.98 on Sept. 2. But before a massive tech selloff knocked AAPL off those levels, the stock had been carving out a channel of higher highs, more than doubling off its mid-March lows near the $53 level. Despite the 15% deficit in September so far, the ascending 80-day moving average has caught the damage and AAPL remains up 99% in the last 12 months.

Analysts are still overwhelmingly optimistic towards the stock, with 20 of the 26 in coverage sporting a "buy" or better rating. Meanwhile, the 12-month consensus target price of $119.25 is a 9.3% premium to current levels.

This upbeat sentiment is reflected in the options pits, where calls are popular. AAPL sports a 50-day call/put volume ratio of 2.15 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 92nd percentile of its annual range. This suggests a healthier-than-usual appetite for bullish bets of late. 

With that in mind, investors looking to get in on Apple stock's next move may want to consider options. The security's Schaeffer's Volatility Index (SVI) of 50% sits in the relatively low 32nd percentile of its annual range. In other words, option traders are pricing in relatively low volatility expectations at the moment. What's more, the equity's Schaeffer's Volatility Scorecard (SVS) ranks at 96 out of a possible 100, implying that AAPL has tended to exceed volatility expectations in the past year -- a boon for option buyers. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI