Ever notice how AAPL almost always closes higher on Mondays? Take a look at the Friday and Monday closes from February to mid May of 2014.
I have to give credit to Travis Sago at aaplpain.com for pointing this out. Travis goes on to propose a theory as to why AAPL behaves this way. It can be summarized as the tail (weekly options) wagging the dog (stock price).
Weekly options are generally opened at the beginning of the week. For AAPL the pattern indicates that is Monday. Consider the following chain of events.
Then consider this chain of events on Friday.
This is very similar to max pain theory. Both rely on the MM buying and selling stock to offset an option position. It is important to note that more call options are purchased every week compared to put options. This means the overall option position of the MM is short.
The reason Travis focuses on AAPL is because it trades more weekly options than any other stock.
What does this mean for you? It simply means you can buy AAPL at the close on Friday and sell AAPL at the close on Monday and statistically have more gains than losses. It also means tht you are holding AAPL for a very short amount of time and thus reduce risk.