Trade of the Week: AAPL

Options, Technology Stocks, Videos
by Jay Soloff
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This past week was characterized by robust action in the big tech names, with companies like Apple (AAPL) and Facebook (FB) posting very strong earnings. AAPL in particular released better than expected earnings, and also announced a 4 for 1 stock split.

Since splits tend to have a short-term bullish impact on the stock price, it resulted in a hefty amount of calls trading on AAPL the day after the announcement. Of the 2.1 million options that traded on AAPL last Friday, about 70% were calls, with several large, bullish trades taking place.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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