MomentumOptionsTrading.com Midday Update for 6/9/2014
Dow 17,000 on Radar/ Apple (AAPL) Under $100
The bulls like round numbers and the next target on their list is Dow 17,000. They have come within 30 points of triggering another magical milestone but the bears have defended the fort, for now.
It was nice to see Apple (AAPL, $93.70, up $1.48) under $100 for the first time in years. Shares opened at $92.69 and have traded down to $91.75 and up to $93.65. Volume is at 43 million and is running just below the average daily volume of 70 million as we head into the second half of trading.
While there will likely be a run to $100 at some point this year, Apple shares have slipped 4%-6% post-split in the past. In any event, the 7-for-1 split was great news for us option traders as the premiums are much cheaper. However, with more shares outstanding, the “beta” in the stock was dramatically reduced, meaning, shares won’t be moving $10, or $20 in a day.
The Dow is currently up 23 points to 16,947 while the S&P 500 is higher by 3 points to 1,953. The Nasdaq is gaining 22 points to 4,343 and the Russell 2000 is advancing 12 points to 1,177.
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