Apple Inc. (AAPL) Option Buyers Take Cues from Icahn

Apple Inc. (AAPL) is higher after Carl Icahn's open letter to CEO Tim Cook

May 18, 2015 at 12:12 PM
facebook X logo linkedin


Apple Inc. (NASDAQ:AAPL) shot higher in late-morning trading, after activist investor Carl Icahn said he thinks the shares are "dramatically undervalued," and waxed optimistic on the company's future ventures. At last check, AAPL has added 1.2% to flirt with $130.35 -- helping the Dow explore record highs -- and option traders are rolling the dice on more upside this week. 

AAPL calls have more than doubled puts so far today, with roughly 325,000 contracts exchanged. Weekly options expiring at Friday's close are dominant, accounting for eight of the 10 most active strikes thus far. What's more, the top five options are weekly calls.

Specifically, buy-to-open action has been detected at the weekly 5/22 129-, 130-, 131-, 132-, and 133-strike calls -- the five most active options at midday. By purchasing the contracts to open, the buyers expect AAPL to extend its upward momentum -- and possibly topple its April 28 all-time high of $134.54 -- and end the week north of the respective strikes.

Today's affinity for bullish bets marks a change of pace for Apple Inc. (NASDAQ:AAPL). On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 0.53 stands in the 88th percentile of its annual range, suggesting traders have bought to open AAPL puts over calls at a faster-than-usual clip during the past two weeks.

 

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