Traders are starting to bet there’s short-term upside for Apple shares after the stock fell more than 10% over the last month.
After noticing the increased call buying activity on Tuesday, Market Rebellion co-founder Jon Najarian decided to follow the traders into the short-dated Apple call options.
When Apple stock fell below $140, “we saw people starting to nibble. Well, they took bigger and bigger bites today,” Najarian said Wednesday on CNBC’s “Fast Money Halftime Report.”
The increased call buying activity was in Apple call options at the $142 strike that expire this week.
Najarian saw similar call buying activity in Netflix Inc. before it “zoomed to the upside.”
MacDailyNews Take: Apple shares were up $0.89 (+0.63%) to close at $142.00. AAPL’s all-time high of $157.26 was set during intraday trading on September 7, 2021. Analysts’ consensus AAPL price target stands at $167.92 (average of 42 analysts).
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Apple is now a laggard tech stock but it will surely recover in a month or so.