Options Traders Taking Bullish Stance Ahead of Launch

Consumer Electronics

Published: September 11, 2012 11:53 am

Last Updated: April 28, 2020 3:16 am

Expectations for the huge product release this week from Apple Inc. (NASDAQ: AAPL) are high. Despite a weak quarter with iPhone buyers holding out for the iPhone 5, this launch could bring in a flurry of sales right in the last three weeks of the quarter. We noted this morning how Piper Jaffray analyst Gene Munster believes that some 10 million iPhone 5 sales could be made in the first three weeks. Options traders are taking a bullish stance here.

The most active contract so far is the weekly expiration for the AAPL $670 Call with almost 10,000 contracts traded so far. Bloomberg has noted that so far today we have seen over 130,000 call options trade (the bullish trade) and that only 80,000 call option contracts (the bearish trade) have been seen so far today. The numbers are even larger now.

After looking at the weekly contracts which expire this Friday versus the monthly contracts which expire on September 21, it is the weekly expiration contracts trading the most. In fact, it is by a ratio of more than 2:1 in the at-the-money and more speculative out of the money calls.

As of 11:45 AM EST we have Apple shares up 0.5% at $666.40 against a 52-week range of $354.24 to $683.29. The consensus price target according to Thomson Reuters is currently just over $736 on Apple stock.

JON C. OGG

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