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.
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.
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