AAPL stock split...which stock to trade now?

[drownpruf]

The Open Interest/Volume on AAPL options makes it clear you are full of shit. It's business as usual for AAPL options, no lost opportunity.

Clearly you are yet again simply making shit up. Notional traded has dropped 80-90%.

 

[drownpruf]

Yeah I stopped trading AAPL a few weeks before split. I'm looking at the chain right now. Presplit I'd normally buy ITM calls for a few points move and theyd be normally priced around $500~$1000, then buy 10 contracts for like a $10,000 trade. Now to get that same $10,000 trade....holy hell I have to buy deep ITM calls or buy like 100 near strike calls....that seems like a lot in commission.

So my question is drownpruf, as an ex AAPL options trader what is your new vehicle of choice? I need to get back to the large swings instead of accumulating gold and silver mining companies for the long term =p

GOOG.

 

[drownpruf]

The spread compared to AAPL presplit looks relatively large. Although I am looking at EOD data atm....Position wise, I can see that buying 1 contract for the same value vs 20 is better....

Do most experienced option traders trade larger priced stocks?

lol to CMG... the thing trades by appointment. PCLN moves $5 on 300 shares. AAPL's volume has dropped even more than the OI would suggest as nobody is trading minis now. They were active with shares at $650.

 

[drownpruf]

The Open Interest/Volume on AAPL options makes it clear you are full of shit. It's business as usual for AAPL options, no lost opportunity.

lol.

 

[syswizard]

Look at PCLN, CMG, NFLX and TSLA.

Add to that:
GOOG
WYNN
LVAS
BIDU

Wait ! Isn't there a free internet-based scanner to determine this list ?
I spent 30 minutes on google and found nothing of value !!!
Most were fundamentals-based.

 

[syswizard]

Why is the opportunity gone after the stock split?

Exactly. Here is the REAL DEAL from professionals:
http://www.cboeoptionshub.com/2014/06/16/aapl-trade-idea/

Any positive things about the split? Yes, liquidity, which was great before the split, should be better. Why? Option bid/ask spreads will be narrower and more folk will be trading options with these cheaper stock prices. Option Volatilities are a bit higher, maybe 15%, than before the split. At-the-money Implied volatilities are around 20 now and they were around 17 before the split. This is pretty normal when stocks get less expensive after a split, moderate increases in Implied Volatility usually result.

 

[drownpruf]

They are talking out of your ass. The spread (% of notional) is actually wider. IOW, it is not 1/7 of what it was... more like 1/4. The HV has dropped four handles since the split, and IV is down about the same. Now IV is up? They could not be more wrong.

 

[newwurldmn]

Exactly. Here is the REAL DEAL from professionals:
http://www.cboeoptionshub.com/2014/06/16/aapl-trade-idea/

Any positive things about the split? Yes, liquidity, which was great before the split, should be better. Why? Option bid/ask spreads will be narrower and more folk will be trading options with these cheaper stock prices. Option Volatilities are a bit higher, maybe 15%, than before the split. At-the-money Implied volatilities are around 20 now and they were around 17 before the split. This is pretty normal when stocks get less expensive after a split, moderate increases in Implied Volatility usually result.

vols were 17 went to 23 and then to 20 after the split and I covered most of my position at 18.5 yesterday.
Realized Vol came in a lot after the split.
I didn't notice and change in the quality of my fills.
Commissions are higher but my pnl vol exceeds commissions substantially.

 

[newwurldmn]

As I think about the split has changed the opportunity set in aapl.
Not because of liquidity or commissions but I think the surface will be different.

 

[drownpruf]

vols were 17 went to 23 and then to 20 after the split and I covered most of my position at 18.5 yesterday.
Realized Vol came in a lot after the split.
I didn't notice and change in the quality of my fills.
Commissions are higher but my pnl vol exceeds commissions substantially.

The ATM combo is $0.20 here. The ATM combo was not $1.40 wide pre-split. Sure, you can improve on that and get close to mid. The volume is down for a reason. It now trades like a Dow component, and as such, is worthless to me. Adding in 5x the comms at a 15 figure on stat-vol isn't a help.

Are you stating that you're doing better with the shares at $90 than $630?

And yes, I agree the surface has gone asystole.