After a difficult year, Apple – almost flat YTD compared with a 27% rally in S&P500 – seems to be on its way to recovery. Since Q4 earnings release the stock has already rallied 10%, but especially this week a new wave of optimism has pushed the stock higher. There Read more…
Given the turbulence in the implied volatility observed in the aftermath of Apple’s Q1 results, we adopt a sophisticated quantitative model to better understand its dynamics. What we have observed so far in the option market is a large decrease in the 1-month implied volatility, and a sustained level of Read more…
Apple, Inc. Market Cap (as of 03/05/13): $418.2 bn Transaction Size: $17.0bn On the 30th of April Apple Inc. has set a new corporate record. In fact, after having recently regained its position as the world’s most valuable company and having announced the largest share buyback in history, it sold $17bn of Read more…
Last week we suggested to leverage on our quant models to play out the cointegration existing between Apple and Amazon by shorting roughly 2 Amazon stocks for each Apple stock bought. The idea, which benefited from both a fundamental and quantitative edge has returned a profit of roughly 5.5%, assuming Read more…
After a long ride south, investors are now given the highly debated Q1 results, which did not seem to bring enough surprise to trigger a turnaround in the stock. However, what we see is indecisive investors frenetically buying and selling the stock on expectations of a short-lived rebound, hindered by Read more…
Apple, Inc. Market Cap (as of 26/04/13): $391.61bn Transaction Size: $100bn over three years (program to end in late 2015) On the 23rd of April, Apple reported its quarterly earnings, with revenues on the rise YoY albeit paired with a lower net income. The results were largely in line with Read more…
Long term investment: long Apple Today Apple reached a new 52 weeks low at 431.88 in a historical fall, losing from September highs nearly 39% of its market value. Moreover it closed red 8 of the last 10 trading days. We believe this is a great opportunity to buy one Read more…