AAPL Surges on Earnings, Stock Split

Analysts are overwhelmingly optimistic on the tech behemoth

Deputy Editor
Jul 31, 2020 at 10:26 AM
facebook X logo linkedin


Apple Inc. (NASDAQ:AAPL) entered the earnings confessional today, and the results were encouraging to say the least. The company's fiscal third-quarter earnings and revenue beat Wall Street's estimates, with gains in every product category as consumers and students move to remote work and learning. It was also announced that Apple approved a four-for-one stock split. As a result, the shares of APPL are surging, last seen up 6.1% to trade at $408.16, earlier hitting a fresh record high of $412.

This news has analysts confident in Apple stock, with no less than 15 chiming in with price-target hikes already today. The most notable comes from Wedbush, with a raise to $475 from $450. Coming into today, 20 brokerages covering AAPL called it a "buy" or better. Meanwhile, four recommended a tepid "hold," and one more called it a "strong sell."

Today's surge sent Apple stock well above its previous July 13 all-time high of $399.82, and the equity is set to close above its 20-day moving average -- a long-term trendline of support that the stock fell below just last week. Even more impressive, AAPL boasts an 96% year-over-year lead. 

The options pits show a strong preference for calls. Apple stock's Schaeffer's put/call open interest ratio (SOIR) of 0.93 sits in the 24th annual percentile, implying long-term options players have rarely been more call-biased.

Today, options traders are taking a greater-than-usual interest in the Big Tech staple. Options are trading at five times average intraday amount -- with volume pacing in the top percentile of its annual range -- with new positions being opened at the weekly 7/31 410-strike call. Running in second is the weekly 7/31 400-strike call, followed by the 400-strike put from the same series.

Regardless of direction, with earnings out of the way, premium can be had for a bargain amid a volatility crush. The security's Schaeffer's Volatility Index (SVI) of 32% is in the 18th percentile of its annual range, meaning options players are pricing in relatively low volatility expectations right now. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI