After reading an article on Apple and seeing the amount of attacks the writer got from suggesting AAPL might be fully priced, I decide to take a look at the June options. Since most of those irate readers were betting on AAPL breaking above 200, I decided that would be the strike where all the speculative money is parked. Sure enough, the June 200 strike has an astounding put to call ratio of .11, almost 10 to 1 more calls than puts in open interest. The 195 strike has a .18 ratio, just as wildy optimistic. Since you figure only institutional money can buy large quantities of a stock at $200, small traders are for the most part the ones picking up these calls, now at 1.89. I would not take that trade based on the current option sentiment.
On a technical note, the January gap close is just under 195.
On a technical note, the January gap close is just under 195.
This entry was posted
on Wednesday, June 04, 2008 at 6/04/2008 07:12:00 PM.
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