Ahh the AAPL iPhone release. I , without a dougt think it will be a great product. That being said, on to tradng. I am looking at the chart and I see a top. The news and the date have been in the news sooo much, I can only think that that information has already been priced into the stock.

We look at the IV, and it is spiking. I have been watching the IV for a while, and AAPL usually does not hold and IV over 45% for very long except for earnings.

SO here is my take, after the announcemet a drop in IV and a slight decline in the price. “Buy the rumor, Sell the fact”, has worked well for me with AAPL. I am looking at the 140/145 Call spread. The 135/140 is an option, but with a lower IV. Since we expect a drop, the 140/145 is a better option.

[Update : AAPL went down from the start of the session. I could not make the trade, at my parameters, so I didn’t make the trade. Never rush a trade.]

This entry was posted on Tuesday, June 26th, 2007 at 4:42 pm and is filed under AAPL, Option Trading.