Hello!
The comments on this profile are unclaimed and thus are unverified.
Do they belong to you? Claim these comments.
Shmid
Is this you? Claim Profile »
10 months ago
in Apple Investors this Market Blows… on Investor in the Wilderness
While it is true that there has been a lot of volatilty in the markets, thatvis not true for AAPL. The implied volatilty is at about 37, which is near YTD lows; so prices are "lower" for option contracts right now. I expect the volatility to increase with a pending deal with China and possible product refresh in September so now would be a good time to buy some oct calls where the premium should increase significantly as volatility grows and you are also limited to the downside because implied volitioity is unlikely to go much lower, so even if stock price goes lower a bit the premium will not lose much value.
1 reply
Zach Bass
Well, that's right. I was referring to market volatility and the relative change in volatility that we have seen last week and can expect as the big boys come back on line next week. We also have Gustav and Hanna to contend with, possibly a new Nano introduction, and greater volume, I expect volatility to increase and therefore increase the value of options.
