Schaeffer's Top Stock Picks for '25

Apple Stock Muted Ahead of 1st Product Launch of 2022

An unwinding of pessimism amongst options traders could send AAPL higher

Deputy Editor
Mar 8, 2022 at 9:56 AM
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A little over a month removed from a record-setting earnings report, Apple Inc (NASDAQ:AAPL) is stepping back into the spotlight. Later in today's session, the blue-chip tech behemoth will hold its first launch event of 2022, where analysts and media expect Apple to announce an iPhone SE update with 5G support, a faster processor, and more impressive camera. The big questions is whether or not it can be done while maintaining the phone's budget-friendly $399 price tag.

Apple stock is getting a muted response to the buzz, last seen up 0.5% to trade at $160.97. The stock's 150-day moving average has helped to keep losses in check, save for its Feb. 24 pullback, which was captured by the 200-day moving average. The equity has experienced some broad-market headwinds recently and last week paused sales in Russia, following the country's invasion of Ukraine. Year-to-date, the shares are down 10.3%.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the FAANG stock sports a 10-day put/call volume ratio of 0.65 that stands higher than 93% of readings from the past year. So, while calls outnumbered puts on an overall basis, the latter were picked up at a much quicker-than-usual clip.

Echoing this, Apple stock's Schaeffer's put/call open interest ratio (SOIR) of 0.97 sits higher than 79% of annual readings. In other words, short-term options traders have rarely been more put-biased.

 
 

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