Apple Options Activity Indicates Bullish Sentiment Ahead of Earnings
Options traders are showing strong bullish sentiment toward Apple ahead of its upcoming earnings report. With the stock near an all-time high and up nearly 20% since late June, there has been a surge in call options trading as investors anticipate significant movement post-earnings. On Friday alone, $442 million worth of calls were traded compared to just $148 million in puts. The implied move for Apple after earnings is currently around 4%, which is much higher than the historical average of about 1%. This suggests traders expect a larger-than-usual reaction from the market. The most notable trade involved over $2.6 million invested in mid-August calls with strike prices at $280, indicating confidence that Apple could stabilize broader markets. Analysts note that investors are viewing Apple as a defensive stock due to its relatively low capital expenditure on AI compared to some peers. Open interest data also shows strong positioning around the $320 and $340 strikes for options expiring this week.
Topics: Apple market sentiment options trading S&P 500