AAPL Vol Getting Stupid Cheap Again

Every so often, typically a few weeks after AAPL earnings, traders go a little overboard in selling AAPL option premium. Well, it’s been a few weeks since AAPL earnings, and traders have sold AAPL IV (Implied Volatility) down to stupid cheap levels…again. Take a look at a chart of VXAPL (the VIX of AAPL).


LivevolX (r) www.livevol.com

Everytime traders take AAPL vol down like this, it ends up biting them in the hind quarters.  I think there is a strong chance that AAPL IV will start to get a bid and/or the stock will start to move.  In either case, owning options looks like a decent play at these levels

The Trade

A calendar spread or straddle swap in AAPL near the money seems to make some sense with  IV low, and HV low as well. Mark S & A