Wednesday, September 7, 2011

Apple Bears Depart on Jobs Resignation

Apple shares rose 1 percent to $379.74 through yesterday since Jobs quit, giving the company a market value of $352.1 billion. Prices to insure Apple shares from losses dropped to a one-year low after Steve Jobs, who presided over a 91-fold increase in the stock, stepped down as CEO.

Instead of increasing equity swings, Apple shares are almost unchanged since Aug. 24 when Jobs, who turned the company into the world’s biggest by market value, said he resigned. Implied volatility for three-month options at the current stock price fell to 1.07 times the level of historic volatility, down from this year’s peak of 1.9 in February. Options usually rise when moves in the underlying security increase.
Reduced costs for puts, or bearish bets, show the prospect of Apple without Jobs as CEO isn’t shaking options traders as investors focus on earnings and as analysts project record profits. Before, stockholders were concentrating on the health of Jobs, who founded the company in 1976 and was diagnosed with a rare form of cancer in 2003.

Wait, wait...There's more at http://www.bloomberg.com/news/2011-09-06/apple-bears-depart-as-jobs-resigning-sends-puts-to-one-year-low-options.html

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