The Option Pit VIX Light Is Yellow: Volatility Is Going To Move.
Apple (Ticker: AAPL) reported earnings last week.
Since then, the stock has been a bit of a dud, with little-to-no movement …
AAPL implied volatility (IV) has fallen off as well.
Yet … I can tell you there is a strong move coming!
Here is how I know …
AAPL has been in a pretty tight range since it reported earnings last week.
The stock has failed to touch $150 and $140 over that period of time.
CBOE Equity VIX On Apple (Ticker: VXAPL), the VIX of AAPL, is stuck in a rut at around 26:
WIth that being said, I think there is a really strong move coming.
And I am not alone …
Big Money has been betting on AAPL moving.
There has been a huge buyer of AAPL straddles over the last two days …
On Tuesday, a trader bought 12,500 AAPL Oct. 145-strike straddles:
Likely the same trader followed that up with another 10,000 straddles on Wednesday:
In total, the trader has bought almost $30,000,000 dollars in AAPL option premium …
This is not a small bet on AAPL moving.
With the way this trade is set up, he or she likely thinks a strong $12-plus move is coming.
My bet would be on the downside, but I could be wrong.
Regardless … the small range AAPL has been trading in is likely to end. I would be a buyer of options here.
The Sep. 145-strike puts are about $3.70, and I think they are a buy …
Your Only Option,