Apple Stock Muted Ahead of 1st Product Launch of 2022

An unwinding of pessimism amongst options traders could send AAPL higher

Deputy Editor
Mar 8, 2022 at 9:56 AM
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A little over a month removed from a record-setting earnings report, Apple Inc (NASDAQ:AAPL) is stepping back into the spotlight. Later in today's session, the blue-chip tech behemoth will hold its first launch event of 2022, where analysts and media expect Apple to announce an iPhone SE update with 5G support, a faster processor, and more impressive camera. The big questions is whether or not it can be done while maintaining the phone's budget-friendly $399 price tag.

Apple stock is getting a muted response to the buzz, last seen up 0.5% to trade at $160.97. The stock's 150-day moving average has helped to keep losses in check, save for its Feb. 24 pullback, which was captured by the 200-day moving average. The equity has experienced some broad-market headwinds recently and last week paused sales in Russia, following the country's invasion of Ukraine. Year-to-date, the shares are down 10.3%.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the FAANG stock sports a 10-day put/call volume ratio of 0.65 that stands higher than 93% of readings from the past year. So, while calls outnumbered puts on an overall basis, the latter were picked up at a much quicker-than-usual clip.

Echoing this, Apple stock's Schaeffer's put/call open interest ratio (SOIR) of 0.97 sits higher than 79% of annual readings. In other words, short-term options traders have rarely been more put-biased.


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