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.
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. This is essentially a $15 million bet that Apple shares will rise above $715 by that same expiration date.
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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. So each 700-strike option will become seven 100-strike options. Apple's all-time high on a split-adjusted basis is about $101.
Wednesday's two trades occurred on the Amex exchange less than a minute apart from each other, shortly after 10 a.m. EDT, and Amex is reporting that they were both bought to open new positions. This is also confirmed by the rising price of the options contracts.
via apple - Google News http://ift.tt/SxWZr4
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