Are traders using Apple to move indices?

“Nic Chahine thinks that even though Apple Inc was re-weighted from 25 percent to 12 percent on indices, traders and investors are still using it as the tail that wags the dog,” Brianna Valleskey reports for Benzinga. “”

“Chahine is an options expert and the author of Create Income With Option Spreads, and he recently joined Benzinga’s #PreMarket Prep to talk about how traders profited from the Apple flash crash last week,” Valleskey reports. “Chahine said that Apple had no business in rallying leading up to the flash crash December 1. He said there was nothing new, but people still bought it up against resistance for weeks.”

Valleskey reports, “‘My thought on Apple is they walk the price up in order to profit on the indices side, and then they dump Apple and are out,’ he said. ‘They double their profits. They use these big tickers that can move indices.'”

Read more in the full article here.

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11 Comments

    1. It’s insane. And regulators do nothing about it. The billions of wealth being transferred into the hands of these a-holes has got to be the biggest white collar crime in history. No contest. I just hold the stock and stay out of this buy/sell game. That’s the only insurance I have against these wolves of wall street.

        1. Yes. Remember that when some idiot blithers about social programs being “well redistribution”. We already have wealth redistribution. All the wealth is being redistributed to the top 5% of the population, leaving jack shit for the bottom 95%.

          1. Exactly!

            And that is what we have gotten from the failed experiment of “Trickle Down” economics. Concentration of wealth in the top 1%+ has more than doubled in the past 30 years, at the expense of the middle class. Over 90% of the population has lost wealth to the elite wealthy, who also enjoy historically low tax rates. Interestingly, the $ value of new wealth the most wealthy 1+% of the most population has accumulated in the past 3 decades is approximately the same as the National debt that has been built up over the same time frame.

            “Tinkle Down” economics has clearly worked for the super wealthy at the expense of a healthy middle class. How long before the top heavy deck of cards comes tumbling down?

  1. Apple will remain Wall Street’s biatch no matter what Tim Cook tries to do. As @itot says, just hold onto Apple, take the dividends and sell when you need to. I don’t think there’s anything else that can be done. These traders are only in the game to make money and care nothing about companies, the ecology or anything else.

    What Wall Street is doing isn’t hurting Apple because it doesn’t prevent them from selling premium products. It’s only taking away Apple’s theoretical full value from small short-term shareholders and I suppose it can’t be helped or I’m sure Apple would have at least tried to do something about it.

    Over the years, some of you have said that Apple will be able to stick it to the hedge funds some day, but that probably isn’t possible. They create the rules to work in their own favor. I suspect there must be some collusion happening between hedge funds, but maybe they all just think the same way. I still think it’s bad business for the economy but what do I know. Practically nothing about how Wall Street works.

  2. What’s the problem if it’s legal?

    Not any different than politicians writing laws don’t apply to them.

    Or a President that ignores the law.

    Stay out of the market, you’ll be fine.

    Better yet, get off your ass and run for office and write the laws you want.

    1. As far as I can tell, it’s selling a large chunk, that gets all the chicken littles running to the lion’s den, and after the slide they rebuy? If that’s the case, it’s totally legal, and damn smart.

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