Eleventh-Hour Option Traders Bombard Apple Inc. (AAPL)

Apple Inc.'s (NASDAQ:AAPL) front-month options are popular today

by Karee Venema

Published on May 14, 2015 at 11:21 AM

Option traders are active on Apple Inc. (NASDAQ:AAPL) today, with contracts trading at 1.2 times the average intraday pace. By the numbers, 321,000 calls have changed hands, versus 162,000 puts. What's more, front-month options are in high demand, with eight of AAPL's 10 most active options expiring at tomorrow's close.

Taking a closer look, the stock's May 127 put and May 128 call have received notable attention, with a collective 49,843 contracts on the tape at last check. It appears as if a portion of the activity is of the buy-to-open kind -- a theory echoed by data from the International Securities Exchange (ISE). Simply stated, put buyers are betting on AAPL to breach $127 by week's end, while call buyers think the stock will continue to power north of $128.

Expanding the sentiment scope reveals put buying has been picking up speed in recent months. At the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AAPL's 50-day put/call volume ratio of 0.49 ranks in the 88th annual percentile. In other words, puts have been bought to open over calls with more rapidity just 12% of the time within the past year.

On the charts, AAPL has been a standout -- which makes it possible that some of the recent put buying is a result of shareholders protecting paper profits. Year-over-year, the shares have surged more than 51% to trade at $128.22, thanks to several big bounces off their rising 80-day moving average. More recently, AAPL hit an all-time high of $134.54 on April 28, following a stellar turn in the earnings confessional.

Off the charts, rumors have been circulating the iPhone purveyor could have its eye on BlackBerry Ltd (NASDAQ:BBRY). Additionally, Apple Inc. (NASDAQ:AAPL) has reportedly settled an employee-poaching lawsuit with A123 Systems.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
UNH Stock Pops on Accelerated Payment Promise
Analysts are very bullish on UnitedHealth stock
Extra Space Storage Stock Wavers After Downgrade
Raymond James downgraded to "underperform" from "market perform"
The Top Lithium Play of 2020
Click to continue to advertiser's site.