Investors brace for more stock volatility on Apple earnings
For years, Apple Inc was a stock investor's dream regardless of the market environment. But now concern about the iPhone maker's growth has made many investors wary about a big share swing after its earnings are released on Tuesday.
Options pricing on Friday suggested a post-earnings move of about 7.5 percent by April 26. That is far more than in the past and reflects the fact that Apple stock has become more volatile.
The company, once the world's largest by market value, saw its shares close below $400 on Thursday for the first time since December 2011. It has shed nearly $300 billion in market value since peaking at $705.07 a share in September. "Being a bear on Apple used to be a lonely position. The tables have turned," said Enis Taner, global macro editor at options research firm RiskReversal.com in New York.
