Increasing volatility in the U.S. stock market is being attributed in part to Apple bears on the options market, who have helped to keep America's largest publicly traded company at around the $100-per-share level.
The New York Stock Exchange, credit Carlos Delgado via Wikipedia.
Data compiled by Bloomberg reveals that demand for contracts that appreciate as shares of Apple fall are at their highest prices in 14 months, when compared to bullish options. Reporters Joseph Ciolli and Callie Bost noted that Apple's sheer size means that a 1 percent decline in its stock can cut about 5 points from the Nasdaq 100 Index.
As shares of Apple have fluctuated around the $100 mark for the last month, volatility in the S&P 500 has increased by 14 percent. Two days alone in September were particularly significant --Â shares of AAPL dropped 4.2 percent on Sept. 3, and lost 3.8 percent on Sept. 25.
As of Friday morning, shares of Apple continue to trade below the $100 mark, off from a high of $102.64 on Sept. 23. But the company's share price is also up slightly from its lowest point of $97.87 in September.
Investors have shown some uncertainty regarding Apple following the launch of the iPhone 6, with a pair of controversies that gained international attention. Though the hype around the so-called "bendgate" issue quickly died off when tests showed it took considerable force to bed one of the new, larger iPhones, the company also took a hit when a buggy software update broke cellular connectivity and Touch ID support on the iPhone 6 and iPhone 6 Plus.
With the company generating negative publicity, options betting on a drop in shares of Apple as of Sept. 29 cost 1.89 points more than those predicting an increase, Bloomberg's data found. That's reportedly the widest gap the market has seen since July of 2013.
Apple may have an opportunity to turn things around soon, with the company expected to be planning another media event this month to unveil new iPad models with Touch ID fingerprint sensors, as well as a 27-inch iMac with 5K Retina display.
And Wall Street analysts remain extremely bullish on Apple stock in spite of recent publicity. In the last week alone, both Evercore and BMO raised their price targets, expecting extremely strong sales of the iPhone 6 and iPhone 6 Plus heading into the holiday shopping season.