Rotting Apple Options
Recurring theme here, but remember back all of about 2 weeks ago when we were noting “under the hood” volatility was actually pretty strong. And masked by a weak VIX.
Well, quite the opposite now, everywhere I look I see a whole lot of cheapness. And it’s not all Energy and Mining settling into their new non-trendiness.
How about AAPL, one of the strongest stocks lately? The volatility chart here is for the past year, and as you can see, we’re not all that much above the 52 week lows as the stock itself bumps and grinds up against the summer highs.
And mid 30’s volatility is far from out of line with stock motion itself. 30 Day HV tends to bottom not much below here, while the more noise-laden 10 day reading hovers in the 30’s and 40’s most of the time (it’s about 35 now).
Yada yada yada, we’re probably in a general options rut here into the Labor Day weekend, but seeing lots of spots that look pretty cheap as fall approaches. This is one of them.
….And just an aside, but loving the Aps on my Iphone. How do “I” CNBC? Simple, I loaded up the live quotes from Bloomberg, lmao.
August 13th, 2008 at 8:49 am
Nice that you have added RSI2 to your charts, Adam.
August 13th, 2008 at 12:27 pm
Yeah the Bloomberg app is so fucking awesome, it made you pregnant.
August 13th, 2008 at 12:43 pm
+1 for the Bloomberg App. It’s the “tops”, right along with Dynolicious (which, on the other hand, is not free).
August 13th, 2008 at 1:31 pm
Yeah, i always run the RSI(2) (you da man). Guess I usually post volatility and not price charts.
Bloomberg indeed. Not me though, maybe Melissa T, lmao.
August 13th, 2008 at 2:41 pm
Adam, translation of the volatility readings for AAPL - bullish, bearish or neither?
August 13th, 2008 at 2:48 pm
it’s never really either. It’s a modest sign of complacency, so I guess bearish, but stocks can rally on cheap volatility forever.
August 15th, 2008 at 2:00 pm
wtf