I’m at it again! Last week I did a speaking gig at a special live event. And I loved it!! I told my team I’m doing it again. They wanted me to get to our regular schedule but I’m not just the “vol guy”, I’m also the “live” guy. People have always known they can get great ideas from my live events but now people are making real money from my trades… ON THE SPOT. Be on the lookout for my special event link for Tuesday…
We have hit on the fact that AAPL is holding this market up.
On Friday we started to see some cracks in that armor.
The VIX is still trading in a pretty tight range.
Despite the selling, it did not break 40 in the last month.
Meanwhile, something unusual is happening in AAPL.
Its implied volatility is now the highest it has been in 2 months.
We have to go all the way back to the last week of April to see Implied Volatility this high.
This while AAPL is just barely off it’s all time high.
Why is this happening?
Big dollars are buying options.
Some money is buying puts against long positions.
ESPECIALLY out of the month puts at or around its old highs (in the 320’s).
Other money is outright selling stock and buying calls as a stock replacement.
EIther way, the smart money is saying AAPL is toppy.
This could lead to another ugly week, along the lines of last week’s performance.
But stay tuned, as the market comes off this time…
I think this is the time to jump in.
But before that happens we are going to see the other side of 3000..
…maybe significantly lower.
Your Only Option,
P.S. – I’m ramping up the Pit Report for you with some sweet intel and order flow from the tapes on exactly what I track! We keep making big changes here at Option Pit, and this is the next in a long list!