Apple’s $500.00 close was not manipulation

Apple’s $500 close has nothing to do with market manipulation so stop with the conspiracy theory nonsense and learn something!” Rocco Pendola writes for TheStreet. “A small subset of readers will believe what they want to believe no matter what type of information gets placed in front of them, but remember this is coming from one of Apple’s biggest defenders as of late.”

“The big money is not sitting in a room changing the hands of a clock or rolling back miles on an odometer on Friday afternoon to make sure that, magically, AAPL closes where they want it to be,” Pendola writes. “Sorry.”

Pendola writes, “There’s a perfectly logical explanation, illustrated in plain English, as told to me by Neil Pearson, University of Illinois Professor of Finance and Harry A. Brandt Distinguished Professor of Financial Markets and Options, back in May 2011. I researched the subject and contacted the professor to authoritatively counter the pure crap ‘opinion’ that options traders work together to get AAPL to close wherever they want it to close on options expiration day [which was Friday].”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Brawndo Drinker” for the heads up.]

Related article:
Why did Apple close at exactly $500 on Friday? – January 19, 2013

59 Comments

    1. Exactly.

      It just “happens” that the closure price is exactly what major options traders needed it to be?

      I don’t believe that events that exact are pure coincidences. No one else should either.

      1. People who sold options needed it to be 500.00. And that’s very simplistic. Options buyers needed it to be anything but 500.00. And before you put your tinfoil hat back on, anyone reading this can sell an option. If you don’t understand the market, you shouldn’t participate.

        1. Exactly. The sellers needed it to be $500. The buyers needed it be “anything else”, but roughly half wanted it to be below $500 and half wanted it to be above $500. Their effects thus cancel out and the stock price is driven to $500, regardless of what’s actually happening at Apple.

          It’s not deliberate manipulation, but that’s splitting hairs. It’s still an artificial force on the fair market price of the stock.

          ——RM

  1. Pendola is a slimy shortseller who has somehow managed to pull the wool over MDN’s eyes (and anyone else who believes that he’s an Apple defender). He’s replaced donkey boy Moritz @ The Street, don’ trust him as far as you can throw him, he’s a FUDster.

    1. Exactly right. He is FUDster when it suits him. He also eliminates the WSJ and media participation in the AAPL downpressure, so it is not just the option traders that are steering the boat here….

    2. Why would anyone believe him to begin with, even if he didn’t have this reputation. He claims to have “researched” his argument, but his research simply consisted of somebody else’s assertions.

  2. It was the master manipulator sending a message. “I control the vertical! I control the horizontal. Most valuable company in the world? Watch this stupid investors. I tap an icon on my phone, enter the stock symbol, enter the end of day price, and voila!. I AM GOD HERE! LANA! LANA! Bring me another beer.”

  3. These people are so full of shit. “readers will believe what they want” – What a douche!

    How much more obvious does this manipulation have to be before our worthless government does something about it

  4. The reality is that the stock is just as likely to close on exactly 500 as it is any other number. We as humans tend to focus on patterns and rounded numbers, so when we see them, it gets our attention.

    1. Ray, Ray, Ray… No, the stock is certainly not “just as likely to close on exactly 500 as another number”
      Absolutely, certainly not.
      What do you think the options market is all about??? Eh?
      Okay, very briefly, it’s about the likely hood of a stock closing on a certain price and guess what? It’s different for different prices.
      I know, amazing isn’t it.?

    2. Ray, dont be so naive. We humans do focus in on patterns…..BUT we are able to then reason further to see what is special about that pattern in correlation with other data.

    1. Exactly. When a guy is able to accurately predict that it will happen over 2 months in advance, it’s hardly just a coincidence or a conspiracy theory. It’s a conspiracy proven as fact.

    2. The guy predicts the trend, the WSJ runs stories with planted lies, others predict the ‘number’ will be around 500 and then it is exactly 500… Right. Nothing but coincidence.

  5. It’s very hard to ignore the fact that the $500 figure for close of business on Friday was talked about at the start of the week and that’s exactly how it worked out, right down to the last penny.

    It could be coincidence, but there comes a point where something is too much of a coincidence and another explanation seems more likely.

    1. Just a thought,,,, Rocco is right about the exact figure of $500.00. But other than that, he is just so full of it.

      He said in one of his articles, “You should think that traders often have similar trade ideas, and as a result sometimes end up with similar positions.” Yeah, think Bernie Madoff!!!

      He was not really lying and ponzie scheming, it just looked that way……. to the tune of several BILLION dollars. Just ask Rocco. /s

      Just a thought.

    1. I saw the MDN headline and thought “Hmm. It will be interesting to see why.” Then I read “writes for TheStreet.com and my thought changed to “WTF, MDN?!? Where is the Think Before You Click™ comment?”
      If you’re going to notify MDN readers that somebody from TheStreet.com has something manipulative/stupid to say, at least put a warning on it for the newbies.
      Geez.

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