Fast Money Traders Discuss A Pullback In Apple Inc.
Guy Adami thinks that the situation now is very similar to the situation from the September 2012 when the stock dropped from $700 to $385. He doesn't think that a decline like this is going to happen, but investors should be careful because the moves of this magnitude are possible. He added that if Apple drops below $98, the best strategy would be to wait and try to buy it at $88.
Pete Najarian bought Apple on Wednesday because the options volume was huge. Approximately two million options were traded and 1.3 million of those were calls. Implied volatility skyrocketed from 24 percent to 36 percent. The most active were the September 12 expiration contracts and the traders were buying the 103 and the 104 strike and selling the 107 strike. Najarian believes that in the short term, Apple is going to trade to $105 and in the longer term it can go to $110.
Brian Kelly also thinks that the sentiment has changed and he feels that this is just the beginning of the sell off. It looks to him that one or two big players wanted to get out. In the short term, he thinks that it will probably bounce back, but in the long term it will go to $80.
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