Apple Inc. (AAPL) Option Traders Bet On a Quick Bounce

Apple Inc. (NASDAQ:AAPL) calls are outpacing puts today

by Karee Venema

Published on May 5, 2015 at 3:07 PM

Apple Inc. (NASDAQ:AAPL) is one of the leading laggards on the Dow today, with the stock off 1.9% at $126.21. In the options pits, calls are outpacing puts by a 2-to-1 margin, with a number of speculators setting their sights on the equity's weekly 5/8 series. In fact, eight of AAPL's 10 most active options expire at this Friday's close.

Receiving notable attention is the equity's weekly 5/8 131-strike call, where it appears new positions are being purchased -- a theory echoed by data from the International Securities Exchange (ISE). By buying the calls to open, speculators expect AAPL to rally north of $131 by week's end, when the series expires.

From a wider sentiment perspective, put buyers have been active in AAPL's options arena in recent months. At the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day put/call volume ratio of 0.47 rests in the 78th annual percentile.

Technically speaking, AAPL has been a long-term outperformer -- up almost 49% year-over-year, and fresh off an earnings-induced record high of $134.54. As such, it's possible some of the recent put buying is a result of shareholders protecting paper profits against a pullback. On the fundamental front, the European Union has postponed an investigation into unfair tax arrangements Apple Inc. (NASDAQ:AAPL) may have received.

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