Apple Investors, Speculators Load Up on Put Options as Shares Decline
$Apple (AAPL.US)$ investors and speculators are rushing to put options that could shield the holders against continued stock slump after analysts flagged demand concerns for the new iPhone 16.
Shares of the tech giant fell 2.9% to $215.97 at 11:59 a.m. in New York Friday after analysts from TF Securities, Barclays, JPMorgan and Bank of America reportedly cited expressed concerns over potentially weaker demand for iPhone 16 Pro models.
IPhone generated $39.3 billion in sales for Apple in the fiscal third quarter that ended June 29. That's almost 46% of the company's revenue.
Barclays analysts cited conversations with distributors and an analysis of pre-order figures on Chinese e-commerce, while JPMorgan analysts noted early demand signs that Pro models are starting off modestly softer compared to the iPhone 15 series, CNBC reported.
About 48,000 put options that give the holders the right to sell the stock at $210 by Friday changed hands as of 11:17 a.m. in New York Monday, the most among Apple options, data tracked by moomoo showed. The price of that contract jumped 283%, with the total volume already exceeding open interest of 36,090.
The second most-active Apple contract is the call option that gives the holder the right to buy the stock at $220 each also by Friday. Volume on that contract jumped more than six-fold to 45,920 from the previous trading day. As Apple shares traded below the call option's strike price, the contract fell out of the money, sending its price sinking 75% to $1.13.
The decline took Apple's share price below the lower line of the Bollinger band, a sign to some who track technical indicators, that the trend could turn bullish. Six other technical indicators tracked by moomoo are flashing a positive signal that a rebound could be in the offing.
Unusual activities on Apple options showed three bullish positions and one bearish, according to data tracked by moomoo. That only bearish position spotted was also the biggest. It involved an active buyer paying a $705,000 premium for put options that give the holder the right to sell 150,000 Apple shares at $210 in 32 days.
(To see unusual options activities, click here.)
In the first half of the trading day, almost 721,000 put and call options spread across 21 expiration dates stretching through Jan 15, 2027 changed hands, making Apple the second most active stock option, just behind $NVIDIA (NVDA.US)$ . (To see the options ranking, click here.)
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Tony Jones820 : great since it's opposite that means stock is about to rocket up.
Alen Kok : Ooh
InGodITrust : ooooooK
Lee Kuan Sieong : g
103417307 : The company is healthy.
Ishah : Well, due to the fact that a man who are married will increased their income by 4 + folds, I would say that the woman has a right to claim her husband's wealth. Even Jeff Bezos, he accredited his success to his exwife. A billionaire status is not a one man project. All the billionaires are or were married when the work was put in to make all their money. Do you know of any single men who have been single all their lives who have billions of dollars? I can't recall. Similar to a wife who is your mother, Elon Musk and Maye Musk, they operate as husband and wife... now that marriage brings the downfall of companies and legacies. MAYE MUSK IS SICK!!!
103479755 : yeh good to hear