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‘My Bet Is Up in Apple’: Jon Najarian

Tuesday, 22 Jan 2013 | 12:56 PM ET
'My Bet Is Up in Apple': Jon Najarian
Apple options suggest a move higher for shares, OptionMonster's Jon Najarian says.

Apple options trading action suggests a move higher for its shares, OptionMonster's Jon Najarian said Tuesday on CNBC.

"You'd expect that since Apple is implying a 7 percent move, that its implied volatility would be double that, and you would be right," he said. "Apple's implied vol at 93 is implying a move of $36 or more for those earnings."

Najarian added that investors were probably fading Apple, IBM and Google because they had thought how to price them last week when Apple's stock price hung around the $500 level.

"I don't think we're going to pin this week. I think it's going to make a move up or down," he said. "My bet is up in Apple right now."

On "Fast Money," Najarian also noted movement in IBM and Google options.

"IBM ahead of earnings tonight is a $6 straddle at the $195 strike. So that's implying a 3 percent move up or down. Volatility's right around 40," he added.

Najarian said options in Google were factoring in a move of about $39 on a $700 stock, or a 6 percent move.

Trader disclosure: On Jan. 22, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long AXP; Joe Terranova is long MS; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is long RIMM 18 PUTS; Mike Murphy is long GS; Mike Murphy is long TGT; Mike Murphy is long FB; Mike Murphy is long EBAY; Mike Murphy is long USG; Josh Brown is long AAPL; Josh Brown is long C; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long CVX; Josh Brown is long JNJ;

For Colin Gillis
BGC Financial or affiliate beneficially owns or controls 1% or greater of shares of the subject company: GOOG; Subject company is an investment banking client: GOOG; BGC Financial or affiliate beneficially owns or controls 1% or greater of shares of the subject company: AAPL; Subject company is an investment banking client: AAPL; Subject company is an investment banking client: EBAY; BGC Financial or affiliate beneficially owns or controls 1% or greater of shares of the subject company: EBAY.

  Price   Change %Change
AAPL
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IBM
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GOOGL
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