[trader220]

Originally Posted by coldstart

Apple is able to start buying back its shares on Friday after the 48 hour window.

It should be interesting to see if the stock rebounds after dropping 4% after fantastic earnings. I suspect that it is the May 1st calls holding back the stock as Wall Street wants to limit its payout on the calls.

I plan on re-entering the stock tomorrow or Friday.

Any other insight to the drop post-earnings? Anything I should be aware of before I buy some Apple stock in the $128-$130 range?

Just out of curiosity how is it that you think “Wall Street” manipulates a stock like AAPL ?

AAPL trades on somewhere in the area of 20 different platforms obviously most notable the NASDAQ. On the NASDAQ alone there are north of 100 firms who make markets in AAPL. There are also hundreds of other firms who are liquidity providers and obviously thousands of firms who trade it on an institutional basis. On the options side: The May 1st expiration is a “weekly” so the OI in them is tiny compared to the standard expiration. There are also dozens of firms who make markets in the options and hundreds more who are liquidity providers in the options. They all take both sides of the market.

So how do those thousands of liquidity providers, all with different interests work in concert to manipulate a stock like AAPL which trades somewhere in the area of 50 million shares a day? Why would they when the open interest in the near the money “weekly” options don’t have huge OI?


By the way. At the close before earnings the stock was roughly 131. Over the last couple days you could have covered any call you sold for pennys on the dollar even before the stock sold off. Implied volatility collapsed (as it should) after earnings. So, if you were a "Wall Strret" firm and you were short a boat load of those calls you could have easily covered for a nice win and not traded a single share of stock. Of course the firms who were short those calls I will guarantee you were also long stock or other calls as a hedge. No one, well let me rephrase that, no one who lasts very long, shorts naked options into earnings.