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Why You Need to Short Apple Right Here

Here is a chart of the 20-day realized volatility in AAPL since the bottom in 2009:

AAPL volatility is most likely reaching a peak. While volatility over the next few days may run hot, the odds that AAPL sustains 30 point price swings every day is very low.

"But wait!" you say. "You just said to short AAPL!"

I'm being sneaky.

I never said precisely what to sell.

Remember that markets move in cycles, and with options you have to care about not only the direction of the market, but the speed and the trendiness.

So whether you are bullish or bearish, you probably want to be a net option seller right here.

I'm a fan of iron condors out in February options. If you want more details, become an IWO Premium subscriber to get the strikes and position sizing.

 

by Steven Place

Steven Place is the founder and head trader at investingwithoptions.com/