Apple Options Volume Beats Nvidia's as iPhone Maker's Shares Climb to Record
$Apple(AAPL.US$'s options volume surged past that of $NVIDIA(NVDA.US$, tracking the iPhone maker's stock rally that widened its lead in market capital over the manufacturer of chips that power artificial intelligence.
Shares of iPhone maker climbed above $200 for the first time ever, taking its market capital to $3.1 trillion after the world's second most valuable company on Monday unveiled its "Apple Intelligence." That AI strategy that includes integrating ChatGPT into Siri, could prompt iPhone users to upgrade to new models, boosting Apple's revenue, according to bullish analysts.
Shares of iPhone maker climbed above $200 for the first time ever, taking its market capital to $3.1 trillion after the world's second most valuable company on Monday unveiled its "Apple Intelligence." That AI strategy that includes integrating ChatGPT into Siri, could prompt iPhone users to upgrade to new models, boosting Apple's revenue, according to bullish analysts.
Melius Research analyst Ben Reitzes expects iPhone revenue growth of about 20% for up to two years, faster than consensus that called for growth of about 4% in fiscal year 2025 and 2% in FY 2026, Barron's reported. Raymond James analyst Srini Pajjuri sees Apple's earnings per share rising by about 20 cents for every 1% of installed iPhones that upgrade to newer models, according to the report.
Apple's rating was raised to buy from neutral by DA Davidson analyst Gil Luria, who also boosted the stock price target to $230 from $200, Barron's reported.
As of 11:10 a.m. in New York, volume has already reached 2.08 million options, making Apple the most-heavily traded stock option. That compares with 1.5 million for $NVIDIA(NVDA.US$ and 662,570 for $Tesla(TSLA.US$. Nvidia and Tesla typically alternate at the top ranking for stock options by volume.
More than 189,000 call options, which give the holder the right to buy Apple shares at $200 by the end of the week, were traded as of 11:19 a.m. in New York Tuesday. That's almost triple the contract's open interest. The price of that most-active option climbed 1228% to $4.17 as the stock climbed 5% to trade above that strike price. The second heaviest volume was seen in $205 call options, with volume reaching more than 132,000, more than five times the open interest.
After the stock rally, 12 of 15 technical indicators tracked by moomoo are now showing that Apple is overbought and the trend could be learning bearish. But of course, there's no guarantee that the market will heed the warning from these technical indicators.
So far today, Apple has attracted $647.9 million in net inflows, more than half of which came from large orders, data tracked by moomoo showed.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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