Friday, November 16,2012 (AAPLTrader.com)
Apple Inc. (NASDAQ:AAPL) hit a low of $505 this morning, exactly 200 points from it’s $705 highs just 8 weeks ago in September.
At the same time AAPL bounced today, we got some good news out of Washington about possible resolutions of the dooming “fiscal cliff”.
This is good news and a sigh of relief for investors.
Will Apple Finally Go Back Up? – Click To Tweet
As of 1pm ET today, AAPL is forming a huge bottoming tail hammer (note the chart above), this is normally considered a reversal candle. You may be asking yourself this question right now: “ahh, but I’ve been faked out before by Apple, how do I know this is a real reversal?”
To put it simply, there is no way of knowing the bottom is here. Today’s bottoming tail hammer is just the first of many indicators needed to show proof of a bounce in AAPL, but at least it’s a move in the right direction.
Also notice the indicator below the above chart, it’s called the Acceleration/ Deceleration Oscillator and is a good indicator for momentum. Interesting that it’s going up, while AAPL’s price is moving down. This is called divergence and can often signal a shift in direction.
See how the AAPLTrader community is trading AAPL right now!
What’s The Story With AAPL’s New Weekly Options?
The U.S. options exchange on Thursday November 15, 2012 expanded the amount of weekly option contracts from one expiration week to five straight weeks for a group of stocks and ETF’s with the most option activity, including Apple.
“We are pleased to be expanding our Short Term Option Series program as a direct response to growing customer demand to trade weekly products,” said Steve Crutchfield, head of NYSE Euronext U.S. Options Exchanges. “We look forward to continuing to build on our track record of providing innovative products like these so investors and traders can access additional trading strategies that are tailored to their individual trading and investing needs.”
The group includes Apple Inc, Bank of America Corp, BP Plc, Citigroup Inc, iShares MSCI Emerging Markets Fund, SPDR Gold Trust, the iShares Russell 2000 Index Fund Powershares QQQ Trust fund, SPDR S&P 500 Trust fund and the Financial Select Sector SPDR fund.
For new expiration’s, five products, including Apple and Bank of America, as well as the Financial ETF XLF, are offered on NYSE Arca and the five ETFs, such as the popular SPY and QQQ funds, are available on NYSE Amex Options.
“The enhanced listings of the weeklies provide investors with the ability to refine their option strategies, including both directional exposure and their hedging activities. Weekly volumes can currently account for as much as 25 percent of total daily volume in the U.S. listed options markets.” Andy Nybo, head of derivatives research at TABB Group, based in New York.
PS. Stock market schedule for next week: Half day Wednesday, closed on Thursday, half day Friday. Enjoy!
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