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Mark Sebastian's Apple Trade

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Option Pit's Mark Sebastian suggested on Bloomberg Markets that investors should consider a bullish options strategy in Apple Inc. (NASDAQ: AAPL).

The implied volatility in the name has increased and the stock is turning into a real value at its current price level, Sebastian said.

The implied volatility for Apple is now around 36, which is its value around earnings, he said.
He wants to sell the July 170 puts for $5. If the stock closes below $170 in July, Sebastian said he's going to have to buy the stock at $170, but it would cost him $165.

 

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Posted-In: Bloomberg Markets Mark SebastianMedia