Apple’s Chief Operating Office Jeff Williams and Chief Financial Officer Luca Maestri both dumped large amounts of AAPL stock this month — prompting speculation that those inside Apple aren’t confident that the share price is bouncing back to all-time high levels any time soon.
Although, as usual, such fears are almost certainly greatly exaggerated.
Forget all the doom predictions about Apple — according to Drexel Hamilton analyst Brian White, the company may have just had its best January since 2008.
Although Apple itself has said that iPhone sales are likely to fall for the first time ever in the January quarter, White claims that his own analysis of Apple’s suppliers suggests that things are looking far from bleak.
Stocks have been getting crushed all year, but according to Goldman Sachs, now is the perfect time to starting betting on Apple options.
Goldman Sachs’ options team has pointed out that Apple options prices are especially low right now compared to the the S&P 500, making it a great target for purchasing a ‘straddle’, which could score investors a big payday if Apple shares move higher or lower than currently expected.
Straddle options work by allowing investors to purchase a bullish and bearish option on a stock so that they make money off the volatility of shares. It’s an advanced investment for most traders to make and it’s not cheap, but Susquehanna’s Stacey Gilbert explains that it’s cheap relative to volatility expectations for the overall market.
Apple soothsayers have been predicting doom and gloom for the iPhone-maker ever since Tim Cook dropped the company’s Q1 2016 earnings. iPhone sales are projected to decline. The iPad is still struggling. And even the Mac is taking a drop.
This is the end for Apple according to some Wall Street crazies, but they’re missing a key metric in Apple’s earnings report that shows the company still has a lot of growing to do thanks to it’s huge install base.
Analysts may be tripping over one another to proclaim the sky is falling for Apple, but apparently no-one told hedge fund managers because (surprise, surprise!) it turns out they’re not in a hurry to get rid of their AAPL stock at all.