Thursday, December 6, 2012

Apple Ups and Downs

It's been a rough time lately for what might be considered America's flagship stock, Apple. The biggest stock in the world has lost more than 17 percent of its value since it peaked - briefly and barely - over $700 back on September 19. The news was even worse than that at one point: Between September 19 and November 15, the stock had fallen by nearly 25 percent.

That means, of course, it's up nearly 10 percent since then. And we can expect to see a bit more whipsawing on the part of this stock in the near future, if the volatility indicators are to be believed. Options traders bought heavily into Apple on Wednesday, according to the Wall Street Journal, signaling there could be more heavy swings ahead.

Yesterday morning alone, the implied volatility for Apple shares jumped by 15 percent. That's not necessarily bad news - volatility can consist of upward swings as much as downward movement. But it does indicate that Apple investors can expect some more choppy waters to come.

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