I wasn't even aware that Apple was reporting earnings today until I read it this afternoon..I saw the stock was down and most of the comments here and on other message boards were very negative so I took some of the profit I made on a recent trade and took a shot this afteroon. I bought 20 Nov 150 CALLS @$0.18 . I figured if they should have good earnings then maybe the stock would pop up tomorrow and I just might make some quick profit tomorrow. Anyone here think these calls will go above $0.18 tomorrow?
Yes I know but I wanted to have a lot of calls and figured if the earnings were better than many expected the stock would really zoom..I sure wouldn't expect it to hit 150 but go up enough where the calls might double to $0.36 tomorrow and then I would bail and take the quick profit.. It was just a hunch as if they missed the stock would have tanked big time and that is another reason why I went way out to $150.00 ..Gave me the opportunity to get 20 Calls and not cost me more than $375.00 with comission.. I sure hope you're right about them going over $0.18 Thanks!
The options on AAPL most certainly had pre-earnings premium priced into them. Now that earnings are out, the probability is high that the vols will drop. By how much is uncertain at this point as the stock is up strongly after-hours. But even with the stock rising, chances are the vols will shrink now that earnings have been released and that could affect option premiums (especially far out-of-the-money) negatively.
As Mr. Doji states, you are about to get a lesson in IV and a phenomenon called "volatility implosion". I hope you don't have much invested in this position.
I don't care if they have $150/ share in cash in 12 months this stock and company WILL NOT be able to make it through this downturn in this economic crisis. My target over the next 12 months is $50-$60 a share. The consumer is done with. They are cutting back on everything especially high priced tech stuff. Sell the rally in Apple shares tomorrow.
Hey I remember you, youâre the guy who bought 1000 ES contracts at the market top, said something like NO RISK!