Market Overview

Dan Nathan's Apple Options Trade


On CNBC's "Options Action", Dan Nathan spoke about options implied volatility in Apple Inc. (NYSE: AAPL) ahead of earnings. The company is going to report earnings on April 30 and the options market is implying a 4.5 percent move in either direction.

The stock has moved 6 percent on average on the day following earnings, on the last four quarters. The 6-percent move doesn't include the 10-percent plunge in January. Nathan added that the stock is still around 12 percent off its highs made last year and only 49 percent of analysts rate it as a buy.

Nathan said that at the money put or call is half of the implied move or 2.25 percent, and he wants to use low implied volatility to hedge a long stock position.

Related Links:

Dan Nathan's Apple Hedge Ahead Of Earnings

Apple Q2 Earnings Preview: What To Expect

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media


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