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macrumors bot
Original poster
Apr 12, 2001


Traders who expect stocks to go down, also known as bears, seem to be moving out of positions in Apple. Bloomberg notes that prices of puts, or bearish bets on Apple shares, have dropped to a one-year low in the wake of Steve Jobs' resignation.
Instead of increasing equity swings, Apple shares are almost unchanged since Aug. 24 when Jobs, who turned the company into the world's biggest by market value, said he resigned. Implied volatility for three-month options at the current stock price fell to 1.07 times the level of historic volatility, down from this year's peak of 1.9 in February. Options usually rise when moves in the underlying security increase.


The stock's implied volatility has dropped 14 percent to 35.72 yesterday from this year's peak of 41.71 on Aug. 8, data compiled by Bloomberg show. Sixty-day historical volatility has risen to 33.36, the highest since July 30, 2010, the data show.

"The uncertainty hanging over the stock is removed," Jack Ablin, who helps oversee $60 billion as chief investment officer for Chicago-based Harris Private Bank, said in a telephone interview.
Cheaper puts mean the broader market feels good about Apple's prospects going forward under new CEO Tim Cook, and expect the company's record growth to continue.

Image courtesy Flickr/BlackburnPhoto

Article Link: Markets Have Faith in a Tim Cook-Led Apple


macrumors regular
Jul 18, 2008
Wirelessly posted (Mozilla/5.0 (iPod; U; CPU iPhone OS 4_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8F190 Safari/6533.18.5)

I believe ive seen it suggested correctly here before but it's because the market had already adjusted before the announcement and didn't really need to drop farther.


macrumors 65816
Jul 1, 2002
Bruges, Belgium
Apple is 50% undervalued already, a further drop would be ludicrous. But its a crazy market at the moment, anything can happen. :p


macrumors regular
Jan 8, 2003
New York
i bought puts immediately after the announcement, because i figured for sure there would be increased selling on this news, even if just temporary. it was temporary indeed -- lasted about an hour. after that point, AAPL was all up, and i ended up losing a few hundred before finally giving up and selling my puts about a week later :/

i've long been a fan of apple, but i'm surprised the market hasn't had a stronger reaction to this. consumer electronics landscape can shift quickly, and even if they continue to put out strong products for a long time, it will be difficult to maintain (let alone grow) the kind of dominance they have right now with ipad and iphone.

we'll see if apple can revolutionize TV soon...


macrumors 603
Mar 18, 2008
About the bear pic: I knew Macrumors had a sense of humor somewhere :D


macrumors 65816
Dec 26, 2009
Deep Space
Markets have faith in Apple.

So if Mr. Cook would spoil the food, he'd be replaced by a different cook.

This is why the markets are not nervous.

Cook is more an organizer, not a creator like Mr. Jobs.

So the markets must have faith in the fact that Apple has more creative minds to offer than the leading one which is parting.


macrumors 68000
Dec 29, 2006
Monterey CA
There are thousands of creative people at Apple. Cook will be given all sorts of good ideas to ponder.

Jobs hardly came up with all the ideas when he was there, and actually he still is and with more time to think deep thoughts. If he has an idea, he will tell Cook about it.


macrumors 65816
Dec 26, 2009
Deep Space
Good ideas come from individuals, not groups.

So, thousands of creatives doesn't mean a thing. It's about how a corporation can keep individual creatives happy and working so they come up with great ideas.

Nothing against discussion and brainstorming. It's necessary social contact. But a room of brainstorming people will not come up with a single good idea of the quality a good, creative individual can.
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