On Friday January 18th Apple stocks closed out the week at a healthy $500 a share. Some people see the unusually high amount as a sign that they invested in the right company, others see it as undeniable proof of a twisted conspiracy plot that Apple has been planning for months.
The notion of an Apple stock conspiracy is in no way new, people have been coming up with conspiracy theories about Apple since the company made its debut. The reason people were riled up on Friday had to do with the suspiciously perfect closing price. It closed at $500 on the dot, not $499.99 or $500.0182487, but a neat little $500. Their perfect price announcement also comes after Apple insiders have been discussing the relatively low demand for the latest iPhone.
Now we may not be able to complete debunk the rumor/theory that Steve Jobs and Steve Wozniak made a pact with Satan in order to ensure that their computers sell, but there is a simple explanation for their “impossibly perfect” closing price.
Friday the 18th was an option expiry day, that magical day when all of the calls and puts (guess/hunches about whether a certain stock will rise to the income heavens or crash and burn in bankruptcy hell) make it to put up or shut up time. These puts and calls give owners the ability to make stock transactions on a certain date for a specific price (also known as the strike price because financial terms aren’t already difficult enough to learn). When expiry day rolls around all of the puts and calls disappear to make way for new estimations, and on this day many investors go absolutely insane buying and selling. The perfect $500 is probably the result of investors with high hopes, not an elaborate price fixing plan.