Apple Closing = $500 is Not Proof of Conspiracy

One emailer is an oddity, two a coincidence, three emails plus a respected tech site means this is a full blown trend. Thus, I am compelled to address this:

There seems to be a bit of paranoia circulating amongst the intelligentsia ignoramia that the mere fact that Apple’s stock closed at precisely $500 on Friday was proof positive of a grand conspiracy to manipulate markets.

The odds were so strongly against this exact close occurring randomly, the argument goes, that something nefarious had to be afoot.

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Note that both options and stocks trade via continuous auction process. This sometimes results in prices being pinned to a strike price (see chart below). There was an enormous amount of open interest n Apple Options, and $500 is a big round psychological number. In this case, the $500 on the nose was the lucky winner.

There are many, many, many things to be angry at Wall Street about.  This is not one of them . . .

Barry Ritholtz puts the Apple stock conspiracy theory to rest.