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Apple, one of the biggest "squezers" earlier this summer has been extremely boring over past months.
The effect of retail and Softbank chasing upside calls, resulted in Apple volatility getting way too high during the early autumn. On Sep 1 we wrote:
we also pointed out volatility was way too rich and was a great overwriting candidate for the crowd that "must be long", but can earn yield onoverwriting.
Tech went out of fashion abruptly and has recently been replaces by the rotation chase. During this time names like Apple have consolidated, but Apple is now getting rather close to deciding whether to stay in this consolidation or break out.
Our most recent logic is that people should start chasing tech on a relative basis again. Apple could get interesting should it start breaking above the negative trend line that has been in place since Sep 1.
Note how Apple volatility has come off, offering interesting long premium plays now (opposed to early Sep). Second chart shows a simple Jan 120/130 call spread.