Will Apple Pin?

• Posted by Adam Warner
• on October 15th, 2009

Sure has that 190 look all over it, no?

Well, we have open interest of 28K on the 190 calls, which is high compared to other strikes, but not exactly sizable vs. volume itself. Apple has already traded 2,710,000 shares 45 minutes into the day.

That’s only one part of the equation though.

If you want to pre-anticipate a pin, lack of volatility helps too, and AAPL sure qualifies there. 10 Day HV is at an absurdly low level of 20, which suggests that simple inertia might just keep AAPL near here anyway. Throw in the fact that MM’s probably own the strike, and it seems like a good candidate.

Now before you go pounding the 190 straddle, keep in mind that pins are just forces on the margins. Company specific or market moving news will easily trump a pin inclination.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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