AAPL is surprisingly not volatile given the health of Steve Jobs. As Adam Warner writes in Daily Options Report, another example of financial media noise.
OK, I’m pretty sure I heard CNBC Chief Apple Stenographer Jim Goldman this morning mixing in talk of Steve Jobs New Liver and the recent volatility in AAPL shares.
Um, no.
The graph here shows 10 day realized volatility in AAPL over the past 52 weeks. If by “volatile” he meant “52 week lows” then he spoke correctly.
Basically this pattern in AAPL exists all over the street, which is part of why options in general are not a great buy right now. This despite the fact that options are as cheap as they’ve been since last September. AAPL July options carry a 37-38 volatility or so, which sounds very reasonable compared to prices any time over the last 9 month’s, but in fact you would need stock volatiltiy to double from recent levels to have them pan out. It could happen of course as stocks do suddenly catch fire (see POT from last week). Just keep in mind that if you see an uptick in stock volatility, it’s already priced into the options.
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