The reason is, you know why the stock is selling off.It's market mechanics, not an actual Apple concern.
There is a high probability AAPL moves higher once it passed the $500 strike. Apple is now in the process of building a new trading range. I am leaving the arrow on the $460 strike for transparency only. A grey swan swooped in today, doing longs a favor, possibly getting us out of this options purgatory. Tomorrow's close will heavily depend on natural buyers and sellers.
(a willing buyer/seller only exists in the futures market) Due to the fiscal cliff and tax selling, I would not recommend selling weekly credit spreads.
Apple has become excessively volatile as if events are taking place.
I am leaving the 98% put range be for transparency. If you are interested in starting a Cr put spread, I'd look to the $500 or $510 strike.
-- In my opinion there shouldn't be any angst if you have an investment in AAPL.
I will still show the ranges, but they do not carry any probabilities. -- Due to NFP numbers, I would keep using the 0 call OI from earlier this week. If sold a call spread or covered call, take your gain and let expire worthless. Options are no match for anomalies or overwhelming buying or selling.
Today you had tax selling part deux as AAPL is still up 33% YTD, mixed with margin calls, and the street finally discovering Apple will keep its cash in the stock.
Using OI becomes less reliable when events or excessive volatility appear.
Until the fiscal cliff is resolved or the new year comes, I will not be tracking probabilities.
Once the mechanical selling is done, the stock will rebound to a somewhat fair market value. High probability; buy or sell near/at the highest put/call OI. You only buy/sell when AAPL breaches and comes back thru.
Example: If AAPL dropped to 5 tomorrow, you don't buy until it breaks thru 0 going to the upside.