The Elephant In The Room

Dear Trader,

AAPL is the 2 Trillion dollar elephant in the room.

What is interesting is that despite how much the stock is moving, the options are dirt cheap.

The lesson I wanna go over for today is:

Often when IV(implied volatility) seems expensive….

It is when it is actually at its cheapest.

Take a look at the IV30 (implied volatility of the last 30 days) chart below.

Now on its own, it might “look” high…

But then look at 10 and 20 day HV(historical volatility) –

They are CRAZY high (the blue and white lines) compared to the implied vol (the red line)…

The VIX Light is Red – which means it should continue to go down.

Your Only Option,

Mark Sebastian

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