AAPL puts are a popular options choice
Apple Inc. (NASDAQ:AAPL) iPhone sales are recovering in China after the tech giant shipped roughly 2.5 million iPhones in the country last month. This is up from the 500,000 iPhones shipped during February, the height of China’s coronavirus lockdown. As a result, Chinese online retailers are offering hefty discounts on all iPhone 11 models, sending the equity up 4.4% at $285.12, at last check.
The FAANG stock has come head-to-head with its 100-day moving average, a trendline that acted as brief support early last year. For the quarter, AAPL stock is up 12%, however, it is worth nothing that the security is still fighting back from a 3% year-to-date-deficit.
Analysts are a bit scattered on AAPL stock, but the majority are leaning toward optimism. Of the 26 in coverage, 21 rate it a “buy” or better, while four say “hold,” and one a “strong sell.” Echoing this is the stock’s consensus 12-month price target of $305.37, which sits at a 7% premium to the stock’s current levels.
Puts currently dominate in the options pits for AAPL stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day put/call volume ratio of 0.87, that sits higher than 94% of readings from the past year. So, while the initial figure indicates calls outnumber puts, the annual percentile suggests puts are outpacing calls at a higher-than-usual clip.
Lastly, AAPL's Schaeffer's Volatility Scorecard (SVS) sits at a high 96 (out of 100), indicating that the stock has tended to exceed option traders' volatility expectations during the past year.