“In the past few weeks, the tech giant has been glued to the $120 level. The stock has closed less than 1 percent away from $120 in each of the past 11 sessions,” Rosenberg writes. “It has closed less than 0.2 percent away from $120 in each of the past six sessions. And in two of those sessions, it closed at $120 exactly.”
“There is something special about the $120 level,” Rosenberg writes. “Last Friday, a huge bundle of options expired on Apple, and the most popular striking price for those options was $120. A large options holding tends to ‘pin’ a stock to the most relevant level, which helps explain why the stock closed on Friday at $120.00. Since then, investors have apparently seen little reason to push the stock far from this well-trodden level. ‘You’re seeing an influx of buyers and sellers at this level,’ options trader Andrew Keene of AlphaShark observed. ‘But earnings will move the needle a great deal.'”
Read more in the full article here.
MacDailyNews Take: We’ll find out how Apple’s holiday quarter (fiscal Q117) went next Tuesday right around 4:30pm Eastern.
On October 25, 2016, Apple provided the following guidance for Q117:
• revenue between $76 billion and $78 billion
• gross margin between 38 percent and 38.5 percent
• operating expenses between $6.9 billion and $7 billion
• other income/(expense) of $400 million
• tax rate of 26 percent
We plan to cover Apple’s Q117 conference call at 5pm ET on Tuesday, January 31st with live notes as usual. That link will appear on our home page around 4:45pm EDT earnings day.
Apple to release Q117 earnings, webcast live conference call on January 31st – January 18, 2017