If you've been under a rock this week,
APPL's sp increased 6.67% (Fri's $502.33 close_Tue's $470.94 open) in the days following Carl's disclosure of his stake and intentions to bully the firm into turning over some of their $147bn worth of cash and marketable securities to shareholders.
Options volume was also 3 times the average on APPL the same day he disclosed (764k calls vs. 344k puts). Most of the volume seems to be short term speculation; the most active contracts were the August $480, $475, $490 and $500 calls.
How would you guys try to play this (if you would at all)? The $3.05 quarterly divs could be nice if you decided to take an outright long position on the stock w/ 1 or 2 yrs horizon. APPL owners really got pummeled over the last year, but sales are still outstanding; robust numbers like the 31.5mm phones sold last quarter should tame the market's view & hinder the kinds of selloffs we saw in 2012, assuming the numbers continue to be strong.
What do you guys think?
Alex.
APPL's sp increased 6.67% (Fri's $502.33 close_Tue's $470.94 open) in the days following Carl's disclosure of his stake and intentions to bully the firm into turning over some of their $147bn worth of cash and marketable securities to shareholders.
Options volume was also 3 times the average on APPL the same day he disclosed (764k calls vs. 344k puts). Most of the volume seems to be short term speculation; the most active contracts were the August $480, $475, $490 and $500 calls.
How would you guys try to play this (if you would at all)? The $3.05 quarterly divs could be nice if you decided to take an outright long position on the stock w/ 1 or 2 yrs horizon. APPL owners really got pummeled over the last year, but sales are still outstanding; robust numbers like the 31.5mm phones sold last quarter should tame the market's view & hinder the kinds of selloffs we saw in 2012, assuming the numbers continue to be strong.
What do you guys think?
Alex.
