Watch for Apple (Ticker: AAPL) to trade away from that support/resistance level at $190-$191 created by that gap on August 3rd.

Here is a look at the historical volatility versus the implied volatility:

The implied volatility, which is the pricing of the options, is trading at a point lower than the historical vol, which is the volatility of the stock.

When this happens, options are considered cheap and a good time to buy.

Looking at the calls for this week:

The 190 & 192.50 calls are trading at roughly 13.50 IV. That’s pretty cheap for AAPL.

The puts are a tad bit higher:

Trading an implied volatility of 13.83.

We all know AAPL can move so much more than that, these are some cheap options.

Thanks for Reading … See You Next Tuesday,

Licia Leslie