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  • Paulo Santos
    The market continues to lap up an unbelievable amount of AAPL call options, and there's simply not stock enough for the option sellers ...
    8/20/12
    Reply (25)
    • Paulo Santos: ...to hedge without it taking the stock higher and higher. Quite impressive. Call options continue to outnumber the cash market.
      8/20/12
    • garyisthebest: bubble?
      8/20/12
    • Paulo Santos: Well, it's not a bubble in terms of valuation.
      8/20/12
    • Market Maven: gary - the daily chart looks bubblicious....hanging out with all the cool kids in the WAY over-bought zone. could keep marching though
      8/20/12
    • Paulo Santos: But the call option speculation that's going on in there is massive.
      8/20/12
    • Paulo Santos: While a stock like MSFT has like 3000 August calls (weeklies) traded today ...
      8/20/12
    • Paulo Santos: ... AAPL is up to 180000 or so ... massive.
      8/20/12
    • Canary Cash: Last week actual pain jumped over 700, I still find that odd, would an early assignment above ask show up in charts? maybe stupid q? I dunno
      8/20/12
    • Daniel Banaszak: Guys who missed the move from 100 to 500 trying to leverage up similar returns on any additional upside from here methinks. Chasing.
      8/20/12
    • Paulo Santos: I don't think the max pain can be correct.
      8/20/12
    • Day Trader001: With new products next month, do you think it will pullback at $700.00 or wait until 750-800? I'm thinking the higher range.
      8/20/12
    • Paulo Santos: I think the levered speculation is now running so high that it will have a quick pullback before the September 12 announcement, and then
      8/20/12
    • Paulo Santos: rally back up again into it.
      8/20/12
    • Funkengruven: Paul, do you anticipate the pull back before heading to $700?
      8/20/12
    • Paulo Santos: Yes, but am certainly not trading it or sure that it will happen. Quite amazingly AAPL seems on track to trade even more calls today than
      8/20/12
    • Paulo Santos: on Friday, which was an expiration. Huge speculation around the stock right now.
      8/20/12
    • Whitehawk: Anyone buying puts or taking short positions?
      8/20/12
    • Paulo Santos: Not me
      8/20/12
    • Paulo Santos: But the volume on the options is clearly loony. Yet, those MMs selling them can't help themselves, they have to buy stock.
      8/20/12
    • Day Trader001: I was going to take a short trade position, but the money's too good to dump it! So I bought more Sep, Oct, Jan calls.
      8/20/12
    • Day Trader001: Think I will follow Paulo's guidelines on this one.
      8/20/12
    • J Mintzmyer: AAPL won't pull back significantly until they miss expectations. They won't miss expectations until W-Street's are 25%+ above Apple's guid
      8/20/12
    • Canary Cash: Seems like a fun game if you had a few billion to throw at it...wonder who has money like that to push MMs around
      8/20/12
    • Paulo Santos: Probably speculators from all over the world. The last time this happened I got messages from several different countries about it.
      8/20/12
    • Paulo Santos: Specs that got burned in it.
      8/20/12