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AAPL down 85% pre-opening

Sometimes I love the ticker!

Shares of AAPL in the pre-market are trading around $92 a share... sure the stock has lost 85% of its value overnight, there was big news today -- AAPL stock split 7:1.  So really nothing to see here.  All the automated news will show that AAPL is the biggest looser today -- some will correct the news to reflect the split.  Others will not.

My bet is that a few investors will call their broker in panic!  The stock is down, the stock is down sell it all!

It reminds me, a million years ago, my then firm had created a structured product for Nortel shares.  It was a strange instrument created in the early 00s (before Nortel went bust).  So in 2005 I get a call from this angry investor, because her structured note was not going up, and all her friends at bought Nortel at $8 and it "was going to $18" -- according to her friends.

I had to point out that she had bough the instrument when Nortel was at $85, we had offered to buy it off her at $100 and at $110 -- she had refused... "it was going up" for ever!  Now here instrument was worth the equivalent of $85, she had not lost a penny (granted she had not made much) but she didn't understand that her capital had been protected (she also got a nice coupon -- hence the note).  This investor could not understand what I told her, she didn't remember (we had recordings) she turning down our two offers -- calls and letters.  She was still pissed that she didn't get the "upside" from $8 to $18 -- actually Nortel went bust and was de-listed a year later.  There's just no pleasing certain investors.

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