Apple options run hot after analyst’s new ‘sell’ rating

Karee Venema, Schaeffer’s Investment Research via Yahoo Finance

Maxim downgraded Apple Inc. stock to “sell” from “hold,” and established a $190 price target on the tech shares — a 28% discount to last night’s close. The brokerage firm also forecast a 5% year-over-year drop in iPhone revenue and a 2% annual decline in total operating profits, and labeled expectations the tech giant could transform the healthcare industry as “unrealistic.”

Looking to Apple’s options pits, total volume is running at 1.2 times what’s typically seen at this point, with roughly 221,000 puts and 192,000 calls on the tape so far. Options bears have targeted the November 262.50 and weekly 11/22 265-strike puts, with new positions being purchased to bet on a bigger retreat for the Dow stock over the next six sessions.

The November 265 call, meanwhile, is AAPL’s most active option today, and it looks like speculators may be buying to open the contracts for a volume-weighted average price of $0.90. If this is the case, breakeven for the call buyers at the close tomorrow, Nov. 15, is $265.90 (strike plus premium paid).

MacDailyNews Note: Apple’s dividend is payable today, November 14, 2019 to shareholders of record as of the close of business on November 11, 2019.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]


  1. I’d agree with them. I would also be wrong. Every time I feel like the iPhone has had it, that it has reached its plateau, Apple slaps a new coat of paint on it (sometimes literally) and people go nuts over it. I also hear from many of the most non-tech savvy people I talk to, “I’m waiting for 5G.”

    I also hear from lots of the social media influencers out there that the “Dump Apple” days are over, because they are paying attention to the Mac again, and because of the “ecosphere.” Everyone is talking about the ecosphere and how good it is.

    So we shall see Maxim.

  2. Analysts have been doing this forever with aapl. It will go up and they will immediately start downgrading it. It just seems so obvious they are trying to manipulate the stock. He thinks aapl should be trading at a 16 multiple, but one of his top picks WDC just lost 95% YOY. I don’t think I would be taking his advice for picking my stocks.

    Really, you know Apple will be one of the leaders in the 5G market and their services keep expanding and growing. I really don’t see a downside over the next year assuming nothing crazy happens with all the trade talk.

  3. This always happens when the stock has a good run. If the bears are planning to force AAPL down for a bit it may be useful to sell some shares and buy back at a lower price.

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