New Headphones Expected to Cripple FAANG Stock

 

Five technology giants; Facebook, Amazon, Apple, Netflix, and Alphabet, trading as FAANG, might see a decrease in the value of their stock with the emergence of a new type of headphone.

Guess what?

Apple Incorporation is the company planning this upset!!!

This is not the first music-focused coup to come from the stables of Apple, they are renowned for their ability to constantly disrupt the tech and entertainment scene.

They recorded a revenue of over $5 billion in their first fiscal quarter in 2017; a yearly growth of over 36%.

When they announced their noise-canceling headphone, a product which rivals headsets like Bose and even the Dre brand, the general public was enthused at the prospect and anticipated an early release.

However, certain development issues arose which caused the launch to be delayed by a few months. Investors are, however, worried that this new headphone will exterminate Apple’s Beats by Dre within a short while.

Apple Inc.’s stock is up 25% yearly and it just clocked a record of $180.61 at the end of February. People attribute the steady increase to the recent ongoing talks with producers of cobalt.

This deal, when it goes through, will give the company direct access to the mines and will facilitate the seamless process of creating the lithium-ion batteries.

Although this surge in price should be a harbinger of celebrations, options traders are wary. According to data which was obtained from International Securities Exchange (ISE), and Chicago Board Options Exchange (CBOE), the put-call volume ratio is 0.69.

This is also the highest percentile when looking through the year. One thing to note, though, is that Apple’s stock proved very rewarding for buyers this past year.

The standard metric used for indicating the volatility puts it at 86%. This is a very good indication that the performance of the shares has exceeded the expectations of options traders in the last year.

— The Option Specialist

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About the Author: The Option Specialist