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Option Trader Makes $ 1.4M Bet on Apple Ahead of iPhone Event

Apple Inc. (NASDAQ: AAPL) has been one of the hottest stocks on the market in the past year, 107.9% ahead of the highly anticipated 5G iPhone launch. On Monday, a spate of large Apple option trades was mixed ahead of Tuesday. iPhone 12 event, but a trader bet $ 1.4 million Apple’s stock is higher this week. Trades: On Monday, Benzinga subscribers received more than 100 option alerts related to unusually large trades of Apple options. Here are some of the biggest ones: * At 10:04 am, a trader purchased options for the 316 Apple with a $ 150 strike price, which ended near the asking price on January 15, 2021 at $ 30.501. The business represented a $ 963,831 recession. * At 10:29 am, a trader purchased 520 Apple call options with a $ 120 strike price, which was near the price of $ 14.50 on March 19, 2021. The business represented a boom of $ 754,000. * At 10:47 am, a trader purchased 1,535 Apple call options with a $ 113.80 strike price, which ended up near the $ 9.60 price on Friday. The business represented bets exceeding $ 1.4 million. * At 11:06 am, a trader purchased 500 Apple options with a strike price of $ 120, ending in $ 17.351 sept at a price of $ 20.3. Represented a $ 867,550 slowdown in trade. The largest trade in the morning was rapid in nature, but two of the four were the biggest recession. This ratio reflects the very mixed nature of Apple options traders prior to Tuesday’s big event, with unusually large trades being inserted on a minute-by-minute basis. See also: Apple Kicks of iPhone 5G Super Cycle on Tuesday: Here’s What to Expect Important: Even traders who stick exclusively to stocks often monitor option market activity for unusually large trades Let’s do it. Given the relative complexity of the options market, large option traders are generally considered more sophisticated than the average stock trader. One of these big options is merchant rich individuals or entities that may have unique information or information related to the underlying stock. Unfortunately, stock traders often use the options market to hedge against their large stock positions, and there is no definitive way to determine whether option trading is a standalone position or a hedge. In this case, given the relatively large size of the largest Apple trades and the fact that there were likely too many big trades, at least some of the trades were defending against large positions in Apple stock. Outlook: In the near-term, Apple’s stock price can be determined much lower than the specs of the iPhone 12 and is high on whether expectations for Apple’s first 5G-compatible phone have been so high There is no way for the device to live. hype. Long-term Apple investors have doubled their money in anticipation of the iPhone 12 in the past year, so a large part of the success is already in stock. At the same time, analysts still expect big things from the iPhone 12, and many will upgrade a large portion of Apple’s huge global iPhone user base within the next year. If the iPhone 12 is a tremendous long-term success, short-term traders may see Tuesday’s unveiling as a sell-out news event in which traders make at least some major gains in the past year. After all, Apple’s market cap now sits at $ 2.14 trillion after a big 5% gain on Monday, and additional pass-through valuations may be limited upside down, no matter how terrible the iPhone 12 is. AAPL chart by TradingView new TradingView.widget ({“width”: 680, “height”: 423, “symbol”: “NASDAQ: AAPL”, “interval”: “D”, “timezone”: “Etc / UTC”) “Theme”: “light”, “style”: “1”, “locale”: “n”, “toolbar_bug”: “f1f3f6”, “enable_light”: false, “allow_sbolbol_change”: true, “container_id”: “tradingview_f6c1aa “)); Benzinga’s Take: The mixed nature of Apple options trading on Monday suggests that the stock has no clear consensus on how the stock is headed after Tuesday’s event. The $ 1.4 million call purchase has a break-even price of $ 123.40, suggesting any additional gains for the stock between now and Friday. There is net profit for the trader. See more from Benzina * Option Trades for this Crazy Market: Get Benzing Option to Follow High – Convention Trade Ideas * Apple Analyst Declares App Store Revenue Growth Last Quarter * Andrew Left of Citron Supports SPAC Trend, But Nikola ‘The Smel Test Not Passed’ (C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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