Apple's support may broke
With the rise in risk sentiment, the market's heavyweight stocks have also begun to pull back. Although the performance of the seven tech giants this week has not been too different (except for $Tesla Motors(TSLA)$ ), investors have significantly different expectations.
Among them, the IVs of $Apple(AAPL)$ and $Alphabet(GOOG)$ have reached a historical high for the past year, which means that investors expect a large volatility to occur next (usually negative).
And the tech giants' earnings reports are in two weeks. Theoretically, the IV level is quite high, but reaching the historical highest level directly indicates that the volatility expected by investors may not only be the earnings report, but also the overall market risk.
Among them, $Taiwan Semiconductor Manufacturing(TSM)$ will announce its earnings report on April 18, and the day before was affected by ASML's earnings report, so the IV is relatively high.
The current high IV is suitable for option sellers, especially for Sell PUT operations, especially actions within two weeks (before earnings reports).
In terms of abnormal options, $iShares Silver Trust(SLV)$ has a large number of unsettled orders, which are due next week (April 24) for the 27.5, 28.5, and 29.5 Calls. Among them, 27.5 and 29.5 are likely to be a combination order, which means that there are large investors who believe that silver can hit a new high within the year next week.
$iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$ have fallen recently due to the fading expectation of interest rate cuts. Therefore, a large number of unsettled PUTs appeared on May 3rd for the 74.5 and 72.5 PUTs, and they are buyers, which means they continue to be bearish for the next two weeks.
What is interesting is the $Warner Bros. Discovery(WBD)$ Warner Bros. stock, where a large investor has placed a combination order for the $8 PUT and $8.5 CALL expiring on May 31, which is likely to be a Risk Reversal order. It is equivalent to catching a low cost bottom because the WBD stock price has been hovering at a low level, so it does not rule out institutions betting on some special events.
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