Call Options Traders Flock to Apple Stock

Near-term traders may want to jump onto AAPL with options

Managing Editor
Sep 17, 2018 at 12:45 PM
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iPhone creator Apple Inc. (NASDAQ:AAPL) has seen heavy options trading in recent weeks, landing on Schaeffer's Senior Quantitative Analyst Rocky White's list of 20 stocks that have attracted the highest amount of options volume during the past 10 trading days. The highlighted names in the table below are new additions since the last time the filter was run.

MAO table All Equities Sept 17


Just last week Apple was dominating headlines after hosting its annual product event, where it announced the latest iPhone and Watch models. However, today, the blue chip is suffering alongside other tech stocks as trade war fears ramp up. At last check, Apple stock is down 1.7% at $219.95.

Longer term, AAPL has been trending mostly higher, its summer pullback finding support at the rising 50-day moving average. And despite today's dip, the iPhone maker sports a 38% year-over-year lead, and recently touched a fresh record high of $229.67 on Sept. 5.

Daily Chart of AAPL with 50MA

Echoing the sentiment listed in the first chart, call options trading has been on fire for Apple stock of late. In the options pits, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows AAPL with a 10-day call/put volume ratio of 2.17, ranking in the 75th percentile of its annual range. This suggests that calls have been purchased over puts at a faster-than-usual clip during the past two weeks.

Lastly, now seems to be an attractive time for near-term traders to bet on Apple stock with options. This is per the security's Schaeffer's Volatility Index (SVI) of 21%, which arrives in the 30th percentile of its annual range. In other words, low volatility expectations are being priced into short-term contracts.


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