More and more analysts have been saying that the second half of the year will be the key to Apple Inc. (NASDAQ:AAPL)’s success. As a result, the number of investors who are banking on that appears to be increasing.
Apple option prices at a two-year low
Apple Inc. (NASDAQ:AAPL) reported the highest monthly loss in one year, so investors are looking further off in the distance for a rebound in sales. Bloomberg Businessweek reports that prices for options on Apple are now at the cheapest level compared to the Technology Select Sector SPDR Fund in over two years.
Clint Carlson's Carlson Capital Double Black Diamond fund returned 3.34% in August net of fees. Following this performance, the fund is up 8.82% year-to-date net, according to a copy of the firm's August investor update, which ValueWalk has been able to review. On a gross basis, the Double Black Diamond fund added 4.55% in August Read More
During the last quarter, shares of Apple Inc. (NASDAQ:AAPL) declined 4.3%. In January, the stock fell 11%, compared to the exchange-traded fund’s 1.7% increase during the first quarter. That increase marked the fifth consecutive gain for the ETF.
Continued promises of new Apple products
Media have been reporting supposed leaks from people supposedly aware of Apple Inc. (NASDAQ:AAPL)’s plans. And then there are the speculations of analysts, which are easily mixed up with the alleged media leaks. Most expect the iPhone 6 to have a larger screen, so if it doesn’t this will be a huge disappointment. Many continue to expect an iWatch or iTV—both of which have been rumored for more than a year. Analysts have been guessing at when both rumored products will launch, and every time, the time frames they have suggested go up in smoke.
Pricing options on Apple
Bloomberg data indicates that options on Apple Inc. (NASDAQ:AAPL) were priced at 7.2 points higher than the Technology Select Sector SPDR ETF. That’s according to three-month implied volatility data. The difference fell to 6.9 points in March 26, which is the smallest difference in February 2012.
Currently Apple Inc. (NASDAQ:AAPL) options buyers are more bullish than bearish. According to Bloomberg, there were 1.22 million calls, which is 40% more than the number of puts owned. That’s according to April 1. Out of the ten most popular contracts, eight of them were bullish. On average, calls buyers are betting that Apple shares will climb9%, hitting $590 by April 19 with the biggest open interest.