Options trader places huge bet on Apple into earnings

Apple, the world’s most valuable company, is gearing up for a pivotal earnings report scheduled for after the bell Thursday. One options trader has placed a huge bet that the AAPL bottom is in.

Apple logo

Tyler Bailey for CNBC:

″[They are] selling nearly 20,000 contracts of the 150, 145 and 140-strike puts that expire this Friday, collecting about $770,000 in premium, betting that the stock will be above $140 by expiration. But, if it’s below $140, [they have] $290 million of stock purchase obligation,” Zhang said.

This particular trade includes a sale of 9,998 contracts of the 145-strike puts, alongside 4,999 contracts of the 150 and 140-strike puts, each. It also highlights the asymmetric risk-reward profile of selling premium, especially in a volatile market.

MacDailyNews Take: Nobody has ever bet enough on a winning horse.

Apple is currently trading at $159.13.

Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!

Shop The Apple Store at Amazon.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Tags: ,