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Apple Options

Apple options can move quickly and they are tough to play. Product launches are highly anticipated, often delayed and widely followed. Short term options on Apple expire three times a week. The stock can move $3.00 or $5.00 or $10:00 in any given day. Do I have any special insights into how to play options on it? Not really, in this case the stock has moved sideways for most of the day after a quick morning drop.
Now here is it's five day chart.
Now this.
So what makes these so difficult to play? It's that so many different factors can make the stock move so luck makes up a big part of what might happen next. A six dollar stock drop on Apple is more likely to experience a reversal in price than a twelve dollar drop. Let's see what happens next. Here is the $307.50 series of Calls in the last minute of Monday trading.
Can you see the volume of trading shoot upwards in the last 70 minutes of trade. Let's see what the open interest is going to be going into tomorrow's opening. Many traders were just 'in and out" of it for the last seventy minute's $.50 price increase. You can see the increase in it's end of the day chart.
Interday market rebounds on options on stocks like Apple with two days of trading life in them which are very liquid (have a large number of daily contracts traded) is a straight forward trade to make.

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