This morning the CBOE Equity VIX® on Apple (ticker – “VXAPL”) rose more than 2 points, and Apple Inc. (AAPL) stock fell below $595 (see charts below). AAPL has experienced some recent management changes, and is seeing some fierce competition in the market for mobile phones and tablets. If implied volatility is rising, income-oriented investors could explore options strategies such as the covered call and cash-secured put.
SEVERAL OF CBOE’S VOLATILITY INDEXES
Below is a summary of values and point changes for several volatility indexes as of around 11 a.m. Chicago time this morning.
VXAPL Index – 1-Year Chart
Apple Inc. (AAPL) – 3-month chart
CBOE’s volatility indexes are key measures of market expectations of near-term volatility conveyed by listed option prices. The indexes measure the market’s expectation of 30-day volatility implicit in the prices of near-term index options. The indexes are quoted in percentage points, just like the standard deviation of a rate of return, e.g. 19.36. CBOE disseminates the index values continuously during trading hours. The indexes are leading barometers of investor sentiment and market volatility relating to listed options. www.cboe.com/volatility