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With Apple Inc. (NASDAQ:AAPL) up nearly 27% from its April 15 low of $73.05, long calls have been the options of choice of late. In fact, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.63 ranks higher than all other comparable readings taken in the past year.
This morning, calls are trading at nearly two times the intraday average, and short-term contracts are in demand, per AAPL's 30-day at-the-money implied volatility (IV), which is up 5.2% at 26.9%. Receiving the most attention in early trading has been AAPL's weekly 7/3 93-strike call. The majority of the 27,361 contracts traded here have done so at the ask price, IV is up 5.5 percentage points, and volume outstrips open interest, collectively inferring buy-to-open activity.
In today's session, Apple Inc. (NASDAQ:AAPL) was last seen 0.6% higher at $92.54, after announcing a new round of iTunes U updates for educators. As such, delta on the call has jumped to 0.39 from 0.27 at last Friday's close, suggesting a 39% chance the position will be in the money at this Thursday's 1:00 p.m. ET close, which is when the weekly 7/3 series expires.