Apple Inc. (AAPL): Options Trader Bets on Stock Reaching $96 Target

Apple Inc. (NASDAQ:AAPL)‘s stock picked up around 0.7% so far on Friday, currently trading at around $91.50 per share, in trading volume topping 22 million shares, roughly a third of the average volume during the past 30 days. At the same time, on the options side, someone has placed a big bet on Apple, and Mike Khouw of Dash Financial Group, during a report on CNBC, has provided his insights on this deal. He stated that on Friday, the “Call” options for Apple traded 2.5 times more than the “Put” options.

Apple Inc. (NASDAQ:AAPL)

 

However, the most important event was the acquisition made by a trader who purchased 15,000 of July “Call” options with a strike price of $92.14. The same investor sold around 30,000 “Call” options with a strike of $96. As CNBC explained this deal means that the trader is betting that the stock price of Apple Inc. (NASDAQ:AAPL) will reach the $96 mark by the end of the next month.

“They ended up spending 46 cents each time they put this on. That’s making a foolish bet it will be above that $92.1 for strike price. [...] The profit starts to tail off a litte bit above $96, so that seems to be level they are targeting,” Khouw said.

Several analysts actually consider that Apple Inc. (NASDAQ:AAPL)’s stock might run to $100. If you remember, before the company did its 7-to-1 stock  split, several agencies have set the $700 target price for the stock. This option bet is also interesting because the expected target is set above the latest high of the stock. Mr. Khouw added that this trade was carried out by someone who is probably holding a long position in Apple Inc. (NASDAQ:AAPL), so if the stock does reach the $100 mark, then they will definitely not loose. In this way, the latest options acquisition will help the investor to raise their performance.

Watch the full video below:

Disclosure: none

 

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!