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(Quartz)   Why did Apple close at exactly $500? TL;DR version: We are all pawns of the 1%, and that includes Apple   (qz.com) divider line 11
    More: Obvious, call options, put options, the local, trading day, stock options  
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3082 clicks; posted to Business » on 19 Jan 2013 at 11:45 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-01-19 01:10:30 PM
6 votes:

Manfred J. Hattan: Oh, wah. It's not like it closed at $500 instead of $450 or $550 because of the options close, or even $495 or $505. It closed at exactly $500 instead of $499.25 or $500.75. If that's your threshold of becoming a terrorist, you should seriously see a shrink or something.


i830.photobucket.com

Firstly, I do see a shrink, and we agree that my irrational rage against things I can't control is something I need to work on.

Secondly, it's not the price itself- it's the fact that this demonstrates how far from the normal behavior of an economy of scale this type of activity is. This emphasizes the fact that to a small, but very influential segment of society, the financial markets are their playground, not their workplace. This hammers home the fact that the American people (and the world) will continue to be lied to and manipulated through the machinations and designs of a moneyed few who don't care if they wreck corporations, investment values, and the livelihood of millions who have toiled longer and harder for their money than these people ever will, so long as "they get theirs". I honestly hope that the economy will double down on the great recession as a number of economists predict it will, because a significant reduction in personal luxury and lifestyle will be the only thing to get Americans off their couches and into the streets with axes and torches.

I was approached by an "Occupy" fellow on the street, collecting signatures in protest of this, that, or the other thing while in Chicago recently. When he asked if I'd sign to show support for his movement, I asked him "Are you guys burning down buildings and killing people yet?" He looked at me like I was speaking a foreign language. I said "So long as all you're doing is getting names on a piece of paper, the people who work in the positions you say are causing all of the problems don't have anything to fear, and you won't hear anything from them but laughter. Who will get taken more seriously by ANYONE- you, a broke college student on the street wailing at the sky, or a multimillionaire? Call me when you stop being completely ineffectual and take up fire and arms against those you complain about. I'll be first in line to get a torch."

What will the threshold for becoming a terrorist (patriot/rebel/freedom fighter) be for people? I was hoping that when it was revealed that the American government can imprison or kill American citizens without due process, it might upset folks enough to effect real change. This did not happen. Will it be when the FBI can throw me in jail for writing a post like this on the internet? I'd wager that there are already many in this country who'd like to see me in jail just for espousing these feelings, and I can't tell you how depressed that makes me, and how bleak the future of what was once the greatest nation on the face of the earth now seems.

I don't have an answer regarding how to resolve these issues, since those with the money and power will fight tooth and nail to keep anything like this from happening; just look at the USA PATRIOT act. An act passed in a time of national tragedy, with a name that no politician could ever hope to vote against, that does a convenient end-around to rights and freedoms that millions have died defending over the centuries. It saddens me that this is the nation in which my children will grow up. I'd prefer living under the threat of instant nuclear annihilation in the '60s (minus the institutional racism and sexism), because at least then, the enemy had a name, and a face. It's hard to wage a war against an enemy that is on the same side as the government you'd protect it from.

/that was way longer than I meant it to be
2013-01-19 10:42:46 AM
4 votes:

Ed Finnerty: That website needs more frames.


Holy shiat that site is awful. One tip for website designers: the only thing I actually care about is the content, so make sure you aren't burying it behind a ton of stuff.

One more tip? When I hit the spacebar, I expect the page to scroll. This is basic functionality. Don't make your menu do the scrolling, and for the love of ass, don't put the cursor directly into a search box.
2013-01-19 01:27:31 PM
3 votes:
The odds of the stock closing at exactly $500 are not significantly different than the odds of it closing at any other price around $500.

If you think that the stock closing at a nice, round number holds any significance you're a complete moron.
2013-01-19 02:31:01 PM
2 votes:
Vegan Meat Popsicle
You're forgetting the much larger population of non-$500.0000 numbers.


Since the stock closes ~ 250 times/year, you don't see how it could possibly land on an even number even once? It is barely worth a comment when my once/week grocery bill comes up even, much less a stock which closes every day. When EVERY stock on the exchange closes at an even number, let me know.

Yes, people in power on Wall Street need to be taken down and shot, but making up conspiracies based on a statistically likely occurrence DOES NOT HELP.
2013-01-19 12:13:04 PM
2 votes:

grinding_journalist: Stories like this make me strongly consider becoming a terrorist, and attacking Wall Street.

Planned well, and with a clearly stated "fark these guys and the stolen money they rode in on" message, I'd expect a spat of "I'm ok with this" reaction as the story hit the media.


Oh, wah. It's not like it closed at $500 instead of $450 or $550 because of the options close, or even $495 or $505. It closed at exactly $500 instead of $499.25 or $500.75. If that's your threshold of becoming a terrorist, you should seriously see a shrink or something.
2013-01-19 08:35:50 PM
1 votes:

grinding_journalist: Stories like this make me strongly consider becoming a terrorist, and attacking Wall Street.

Planned well, and with a clearly stated "fark these guys and the stolen money they rode in on" message, I'd expect a spat of "I'm ok with this" reaction as the story hit the media.


What exactly is the problem? It's a bunch of traders well ... trading. They're constructing positions using options and the underlying stock, and the action tends make the stock price gravitate to one of the option strike prices. I've hedged stock positions using options many times, and I'm not part of any grand cabal out to screw the world. Once the option expiration date is past, the stock will move off the strike price according to natural market forces.
2013-01-19 02:43:26 PM
1 votes:
I have no problem with the stock market as an idea. That said, all exchanges of stock should be made with actual pieces of paper, signatures from both sides of the exchange on each piece, with the price being what the market has it at at the time the exchange is conducted. Both parties must also down a shot of gin for every 100 (or portion thereof, if less than 100) shares changing hands after the first 100, if more than 100 shares are being traded.
2013-01-19 02:32:15 PM
1 votes:

Ghastly: Since this site won't load on my computer for some reason I don't know if the stock closing at precisely $500.00 is more unusual than if it closed at precisely $503.76 or precisely $482.31.


It's an options expiration thing. Finishing right on the nose is actually pretty rare but often stocks trade closer to their options' closest strike price than it might have absent the expiration as traders either hedge or close out their options positions and/or bulk up/lighten their stock exposures to cause/prevent options exercises. Most investors benefit from this as it reduces volatility on option expiration day.

So in this case, the stock trading around $500 meant that, absent news, it was likely to stay closer to the $500 exercise price than to the next exercise prices of $505 or $495, even if those stocks in the same sector with relatively small options exposure moved up or down. Do that lots of times and you'll hit the price on the nose slightly more often than chance.
2013-01-19 02:00:07 PM
1 votes:
AAPL is over. Let it go.

If you haven't already gotten rich from it, then you aren't going to.
2013-01-19 01:49:17 PM
1 votes:
Vegan Meat Popsicle
You're forgetting the much larger population of non-$500.0000 numbers.

A fix is on.
2013-01-19 10:36:22 AM
1 votes:
That website needs more frames.
 
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