Vol in AAPL: The World Going One Way, Apple Another, Yo

by CC March 15, 2012 10:39 am • Commentary

Here’s an interesting chart of the CBOE AAPL VIX. What it shows is how crazy things have been getting recently in AAPL. As the overall VIX has been getting smooshed as the market makes new highs, AAPL’s vol has been going higher as it makes new highs.

  • As the stock has been going parabolic recently its implied vol has been going higher too.
  • Skew basically non existent, everyone wants the calls. What does that say?
  • 7k of the march weekly calls have traded in first 45 mins of trading, weekly call volume vs. put volume is at least 20x calls vs puts.
CBOE AAPL VIX from Bloomberg

The 3 day intraday chart of the Apr 565 put is a great illustration of how implied vol has popped. AAPL closed at $567 on Tuesday, but the 565 strike put is worth more now with stock significantly higher.

AAPL 3 day Apr 565 put from Bloomberg


Vol going higher as a stock goes higher is not usual activity and tends to happen in bubble situations. Is AAPL a one man bubble?



(Post title paraphrasing Poot (NSFW:))