Apple Inc. (NASDAQ:AAPL) has had a great run in the past few days, breaking its all time high (split adjusted) and trading well above the $100 mark. Though overall volatility in the market is at lower levels, oscillating between 11 and 12, Apple Inc. (NASDAQ:AAPL)’s option is seeing a lot of activity. Anshul Agarwal, Equity Derivative Sales Trader and Strategist at Bay Crest Partners discussed the activity happening around Apple Inc. (NASDAQ:AAPL)’s stock on Bloomberg, recently.
“A lot of retail flow, options are very active. Calls are trading almost twice as many, compared to the Puts. The action is surrounded around the $100 strike. […] People are really active, they are trying to just take some profit out as soon as they can. The biggest trade today, so far was a customer who probably sold the January 95 -110 Calls, which is he sold the $95 calls and bought the $110 calls. Seems like its a closing trade […],” Agarawal said.
Agarwal mentioned that the trade would have made sense if it was traded at around 623. According to Agarwal the reason for that trade at the closing could have been that the customer placing that trade was long on Apple Inc. (NASDAQ:AAPL)’s $95 calls and booked some profit on those, while at the same time having some exposure with the $110 calls. He also thinks that the bank, who facilitated this traded swapped some Apple Inc. (NASDAQ:AAPL)’s $110 strike, October expiry calls to hedge their risks.