Markets Have Faith in a Tim Cook-Led Apple

by


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

Top Rated Comments

(View all)
Avatar
116 months ago
About the bear pic: I knew Macrumors had a sense of humor somewhere :D
Score: 9 Votes (Like | Disagree)
Avatar
116 months ago

so wud up with the bear :D


It is a reference with a sentence in the text:


Traders who expect stocks to go down...also known as bears...


:D
Score: 4 Votes (Like | Disagree)
Avatar
116 months ago

That's great, although what does the bear has to do with it? :D

so wud up with the bear :D

Very first line:

Traders who expect stocks to go down, also known as bears

Score: 4 Votes (Like | Disagree)
Avatar
116 months ago
I wish they would let that bear lead Apple. He's got a lot of potential.
Score: 3 Votes (Like | Disagree)
Avatar
116 months ago

I wish they would let that bear lead Apple. He's got a lot of potential.


Indeed, imagine the innovation:

The iClaw, The iFish and of course the iMaul! :cool:
Score: 2 Votes (Like | Disagree)
Avatar
116 months ago
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...
Score: 2 Votes (Like | Disagree)

Top Stories

Apple-Acquired Dark Sky Officially Shuts Down Android App

Saturday August 1, 2020 3:43 pm PDT by
Apple in March purchased weather app Dark Sky, and at that time, Dark Sky's developers said that the app's Android version would be discontinued on July 1, 2020. However, instead of shuttering the app on that date, the app's developers announced that the discontinuation would be delayed for another month. Now that it's August, Android users are no longer able to access the app, and...

Apple May Launch This Year's 'iPhone 12' Lineup in Two Stages, With 6.1-inch Models Debuting First

Monday August 3, 2020 3:14 am PDT by
Apple last week confirmed that its "‌iPhone‌ 12" launch will be delayed this year due to the ongoing global health crisis and restrictions on travel. Apple last year started selling iPhones in late September, but this year, Apple projects supply will be "available a few weeks later," suggesting a release sometime in October. We're expecting a total of four OLED iPhones in 5.4, 6.1, and...

Top Stories: Try the 5.4-Inch iPhone 12 Display Size, Blockbuster Earnings, Tim Cook at Antitrust Hearing

Saturday August 1, 2020 6:00 am PDT by
Another busy week of Apple news and rumors has wrapped up, with a lot of focus on Tim Cook's appearance at a Congressional antitrust hearing and a blockbuster earnings report. Subscribe to the MacRumors YouTube channel for more videos. We continued to hear rumors about the upcoming iPhone 12 lineup, including a rare admission from Apple that the lineup will launch "a few weeks later" than...

Just How Small Will the 5.4-Inch iPhone 12 Screen Be? Try It Out for Yourself

Tuesday July 28, 2020 12:57 pm PDT by
As rumors of the iPhone 12 have continued to build over the past few months, the one model that has the most excitement around it is the smallest 5.4" model. The iPhone 12 is believed to be coming in 5.4", 6.7", and 6.1" sizes. Dummy models have shown how much smaller the 5.4" is compared to the rest of the iPhone lineup. The upcoming 5.4" iPhone falls in-between the size of the original...

Unreleased iPod Touch with Mac Pro Glossy Black Finish Shared Online

Sunday August 2, 2020 11:32 am PDT by
Twitter user @DongleBookPro has today posted images of what seems to be a first-generation iPod Touch prototype with a 2013 Mac Pro-style glossy black finish. The Twitter user claims that the iPod Touch prototype pictured has "the same coating as the 2013 Mac Pro." Had the finish been selected for the final product, it also would have been similar to the metallic glossy black finish that...

Apple Confirms This Year's iPhone 12 Models Will Be a Little Bit Late

Thursday July 30, 2020 2:34 pm PDT by
During today's earnings call covering the third fiscal quarter of 2020 (second calendar quarter) Apple CFO Luca Maestri confirmed that Apple is expecting to release this year's iPhones later than usual. Maestri said that Apple last year started selling iPhones in late September, but this year, Apple projects supply will be "available a few weeks later." Multiple rumors have suggested that ...

Battery Likely for Upcoming Apple Watch Series 6 Filed in Certification Listings

Saturday August 1, 2020 5:46 am PDT by
A battery likely for the upcoming Apple Watch Series 6 has been filed at the Korea Testing and Research Institute and discovered by a Twitter user @yabhishekhd. Certification for a 1.17Wh battery with a capacity of 303.8mAh was issued on June 23 by the KTR, a Korean regulatory body that approves and tests new hardware ahead of public sale. The battery seems to be destined for a future...

Apple Watch Series 6 to Feature Blood Oxygen Monitoring Sensor

Friday July 31, 2020 1:56 am PDT by
The Apple Watch Series 6 will add blood oxygen monitoring to its features list when it's launched later this year, according to a new report from DigiTimes. Apple Watch 6 will feature biosensors that can monitor sleeping conditions, detect blood oxygen and measure pulse rates, heartbeats and atrial fibrillation, and will also incorporate MEMS-based accelerometer and gyroscope, all allowing the ...

Apple Marks Return of NHL With New 'Hockey Tape' Ad Shot on iPhone 11 Pro

Saturday August 1, 2020 2:33 am PDT by
Apple today marked the return of NHL hockey with a new "Shot on iPhone" ad on its YouTube channel in Canada. Titled "Hockey Tape," the 30-second video features Vegas Golden Knights players Marc-André Fleury and Mark Stone having some on-ice fun with the iPhone 11 Pro, which they attach to the boards, a hockey stick, and a skate with hockey tape. "See the game like never before with Ultra ...

Emails Reveal Why Steve Jobs and Phil Schiller Blocked In-App Purchase of Kindle Books

Friday July 31, 2020 6:25 am PDT by
Internal Apple emails, made public by the House Judiciary Committee's antitrust inquiry, have revealed information about why Apple blocked in-app purchases of Kindle books on iOS devices, reports The Verge. Two sets of emails between Steve Jobs, Phil Schiller, Eddy Cue, and various other senior Apple executives, disclose the exact thinking behind how Apple approached Kindle on iOS. The...