“In the second-straight day of heavily bullish options buying in Apple, one major investor appears to be betting nearly $60 million that Apple shares will rise above $700 by October,” Alex Rosenberg reports for CNBC. “In one of Wednesday morning’s largest options trades, 20,000 Apple 675-strike call options were traded for $21.30 per share. Since each call contract gives an investor the right to buy 100 shares at a set price within a set time, this amounts to a $43 million wager that the stock will trade above $696 by Oct 17.”
“In addition, the same trader appeared to buy 10,000 October 700-strike calls for $14.75 each,” Rosenberg reports. “This is essentially a $15 million bet that Apple shares will rise above $715 by that same expiration date. That would exceed Apple’s all-time high of $705, which it hit in September 2012.”
“It’s worth noting that while Apple’s shares are about to split 7-for-1, the strike prices will automatically be adjusted for this split,” Rosenberg reports. “So each 700-strike option will become seven 100-strike options. Apple’s all-time high on a split-adjusted basis is about $101.”
Read more in the full article here.
To be exact, Apple’s all-time high is $705.07, set during trading on September 21, 2012. After the split takes effect on June 9th, Apple’s split-adjusted all-time high will stand at $100.72.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]