Q2 STOCKS TO BUY

Downgrade Puts Minor Dent on Outperforming Apple Stock

The stock hit a fresh 52-week high during Friday's session

Deputy Editor
May 22, 2023 at 11:39 AM
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Apple Inc (NASDAQ:AAPL) stock is taking a breather after last session's one-year high of $176.39, after a downgrade from Loop Capital to "hold" from "buy." This is the first analyst downgrade the tech stock has seen in five months, though the shares are only modestly lower in response -- down 0.5% at $174.38 at last glance. 

Since the start of the year, Apple stock is up 34%, with recent support from its 30-day moving average. The equity is above all other notable short- and long-term trendlines as well. Meanwhile, short interest has been building, up 11.7% during the last two reporting periods.

Options traders have been overwhelmingly bullish, per AAPL's 10-day call/put volume ratio of 1.38 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher all readings from the last 12 months.

Now looks like a good time to weigh in on AAPL with options, per its Schaeffer's Volatility Index (SVI) of 19%, which ranks in the low 3rd percentile of its annual range. This means options traders are pricing in low volatility expectations at the moment, and that premiums are particularly affordable. 

 

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