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Real-time equity news
U.S. stock market report
0952 ET 19Oct2010-Bullish options activity seen in Apple
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Apple shares shares were down 3.8 percent to $306 on Tuesday after
the company reported its iPad shipments came in below expectations, but options
activity suggest the underlying stock is still attractive. The most active
options on underlying stock was the Nov $310 and Nov $330 calls, said Ryan
Detrick, senior technical strategist at Schaeffer's Investment Research,
suggesting investors are bullish on the stock. "Apple earnings were actually
pretty good but expectations were just too high," he said. Detrick added that
Apple shares were already at overbought levels which is triggering more profit
taking. "It's still a stock everyone wants to own."
At least eight brokerages raised their price target on Apple after the
company's earnings report late on Monday, in anticipation of the holiday season
and saw weakness in shares price as a buying opportunity. For details, see |
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