“Prices to insure Apple Inc. (AAPL) shares from losses dropped to a one-year low after Steve Jobs, who presided over a 91-fold increase in the stock, stepped down as chief executive officer,” Cecile Vannucci and Jeff Kearns report for Bloomberg.
“Instead of increasing equity swings, Apple shares are almost unchanged since Aug. 24 when Jobs, who turned the company into the world’s biggest by market value, said he resigned,” Vannucci and Kearns report. “Implied volatility for three-month options at the current stock price fell to 1.07 times the level of historic volatility, down from this year’s peak of 1.9 in February. Options usually rise when moves in the underlying security increase.”
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Vannucci and Jeff Kearns report, “Reduced costs for puts, or bearish bets, show the prospect of Apple without Jobs as CEO isn’t shaking options traders as investors focus on earnings and as analysts project record profits. Before, stockholders were concentrating on the health of Jobs, who founded the company in 1976 and was diagnosed with a rare form of cancer in 2003.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]