Manipulation of Apple's Stock Price Evident in the Options Market?
Apple's stock price drop in the closing minutes of trading on April 29th
Fortune reports on an interesting phenomenon being observed in Apple's stock price related to the weekly options market, the trading of rights to purchase stock at a given price at the end of a specified period. According to the report, Apple's stock is consistently seeing suspicious price changes on Fridays as those options are set to expire, activity that makes a significant of traders lose any potential gains as the stock price moves to meet the strike price for that week's options. In many cases, that activity serves to depress the overall stock price, thereby also negatively impacting regular traders as well.
It was 3:48 p.m. on Friday April 29 and traders who had purchased Apple (AAPL) April 29 $350 "calls" -- options that gave them the right to buy Apple shares in blocks of 100 for $350 per share -- were sitting pretty. The stock was trading around $353.50 and those calls were worth more [than] $350 apiece (the difference between the price of the stock and the so-called "strike price" of the option times 100).
Then, in an extraordinary burst of trading -- exacerbated by the rebalancing of the NASDAQ-100 scheduled for the following Monday -- more than 15 million shares changed hands and the stock dropped below the $350 strike price just before the closing bell. Result: The value of those calls disappeared like a puff of smoke.
Fortune went back and charted the daily closing prices for Apple stock over the past eight weeks, comparing the Friday closes to the "max pain" price at which options on both sides of the equation (puts and calls) have the least value in aggregate. Throughout the time period, Apple's stock consistently moved toward the max pain point on each Friday, sometimes over a period of only minutes as trading came to a close for the week.
While the phenomenon is not new and not unique to Apple, the reasons for it are not entirely clear. Some have argued that normal hedging activity is responsible for the drifts in stock price, but scientific studies have shown that such stock price behavior would not be accounted for by simple hedging and is thus indicative of stock price manipulation, which is illegal under U.S. securities law.
Apple is obviously one of the most closely watched stocks these days, and with the second-largest market capitalization in the U.S. markets has the potential to significantly influence trading. And so an apparently consistent manipulation of Apple's stock price makes for an interesting story, even if it is not yet clear who is responsible for the activity and how it is being accomplished.
Popular Stories
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year.
As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display
iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year.
In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors.
Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each.
iPhone 17 Series
iPho...
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July.
Transparency
In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further.
Apple has a web page with a list of vehicle models that ...
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices.
Below, we recap key changes rumored for the iPhone 17 Pro models.
Latest Rumors
These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
New renders today provide the best look yet relocated Apple logo and redesigned MagSafe magnet array of the iPhone 17 Pro and iPhone 17 Pro Max.
Image via Majin Bu.
Several of the design changes coming to the iPhone 17 Pro model have been rumored for some time, such as the elongated camera bump that spans the full width of the device, with the LiDAR Scanner and flash moving to the right side.
...
iPhone 17 models will feature a redesigned Dynamic Island user interface, according to a post today from Digital Chat Station, an account with more than three million followers on Chinese social media platform Weibo. The account has accurately leaked some information regarding future Apple products in the past.
The account did not share any specific details about the alleged changes that are ...
Amazon is back with its annual summertime Prime Day event, lasting for four days from July 8-11, the longest Prime Day yet. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront. With the event now underway, we're tracking numerous all-time low prices on Apple gear right now.
Note: MacRumors is an affiliate partner with Amazon. When you click a...
