Apple bears awaken with volatility highest in four months

“Apple Inc. (AAPL), whose share swings are contributing to one of the worst bouts of U.S. stock volatility this year, is becoming a focus of bears in the options market,” Joseph Ciolli and Callie Bost report for Bloomberg.

“Demand for contracts that appreciate as Apple drops are selling at the highest prices in 14 months relative to bullish ones, data compiled by Bloomberg show,” Ciolli and Bost report. “The stock has moved an average of 1.2 percent a day since the start of September, up from 0.9 percent in the first eight months of 2014, as concern mounted that features of its new phone are flawed.”

“Small changes in Apple have big implications for investor sentiment because of the company’s market value, the largest in the world. A 1 percent decline in the stock erases almost $6 billion of equity capitalization and lops about 5 points off the Nasdaq 100 Index. Its fit in the last four weeks has coincided with a 14 percent increase in S&P 500 volatility,” Ciolli and Bost report. “‘Volatility is creeping back into the market,’ Steve Sosnick, equity risk manager at Timber Hill LLC, the market-making unit of Greenwich, Connecticut-based Interactive Brokers Group Inc., said in a Sept. 30 phone interview. ‘It’s no surprise that people would want to hedge profits on such a huge company that’s had great returns this year. They’re more fearful than greedy.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

10 Comments

  1. This is not fear at all. These are manipulators period. I believe the shysters are stunned about reports that reservations in china have already hit 4 million just within 24 hours.

    Their only choice now is to have annalysts come out and actually suggest lower price points.

    In the end, they will justify all of these to our wonderful congressmen as a means of providing liquidity. Alll BS of course, but our venerable representatives conveniently forget what happened in 2008 and how we the taxpayers actually are providing liquidity for these shysters.

    1. I forgot, notice how none of the biggest megaphones for the venerable WS saints, are carrying the story on the 4 million in reservations that have been placed in China within 24 hours. Reuter, WSJ, Bloombers, cnbc, The narrative does not support what the y want to happen. To destroy the options today and the next few weeks.

    2. If you really believe the market is being manipulated, all you have to do is go in and take the opposite side. Hint: in a two-sided market, manipulation is impossible.

    3. You are correct, it’s is manipulation for the sole purpose of generating more money.

      The people in control of the large chunks of shares are creating FUD and selling large blocks of shares to push the price down. They know very well that when AAPL quarterly announcement comes out or if they know that there will be new products released on Oct 21st, then the stock price will skyrocket back up.

      So, they sell now and have a certain price in mind to jump back in so they can increase their holdings. This is not new and if you have been an AAPL holder over the past, say the past 12 years or so, you would know this is the game they play.

      You can either play the game with them, hold, short the stock or take that extra cash you have from dividends and reinvest when it gets to a price you like before the quarterly announcement or upcoming product launch (usually just a few days before).

      Remember, they aren’t using their money but other peoples money so they really don’t care if they lose or make money. They don’t care about you, it’s not their job. They get paid either way.

  2. Apple (or at least aapl) is a victim of its own success.
    The hype of iPhone 6 and 6 Plus are fueling this. The market already knows that the phones are a big success. So they are guaranteed that the stock can go up after they pull it down. Look at all the FUD that came out. iOS8 update issues, bend gate, China not being in the first release.
    So there are many ways for the market to move the stock. If you know where it will be in the next few days there is a lot of money to be made.
    Like politicians, the market has its own agenda. I feel sorry for the poor investors who are recommended to buy aapl at the wrong time. I am also very concerned that the retirement funds I own are being used as vehicles for this manipulation.

  3. Why Apple is of course a major player, but why is everything that occurs in market swings because of what Apple Does? (or doesn’t do) How about the plethora of other issues that are out there and they aren’t all technological that can contribute to market volatility.

  4. This is not “investing”, this is computerized Pump and Dump!

    Having watched this with greater attention over the past few years I believe that computer algorithms used in conjunction with fractional computer trading utilize the volatility created by “news” chatter to pump and dump the system. Any mer mortal who trades during these mega “news” events is serving to help the computers take money out of the human traders collective pockets and put it into the pockets of the computer traders a fraction of a penny at a time. Volatility is a key component of this scheme, because it creates lots of trades, to enable lots of intercepts, resulting in tremendous volume in fractional trading profits.

    Why this kind of high frequency computer trading is legal is beyond me. I can see NO benefit being provided to our socio-economic system, while I see it doing much damage by the transfer of wealth from the middle class to a fraction of a percent of the most wealthy of the wealthy. Anyone who tries to play the old “liquidity” card has either drunk their own KolAid or must think we are all idiots, not just our government.

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