Apple (AAPL) is off $10.25 to $630.33 and is now down 10.6 percent from the highs of more than $700 seen just a few weeks ago. The stock is seeing relative weakness today on headlines about a court reversal related to a patent dispute with Samsung. Simply put, the case goes back to court for resolution. While the uncertainty weighs on the stock, options volume is 750K contracts and in-line with the normal levels for the stock. Interestingly, the 12 most actives in Apple today are Weekly contracts that expire after tomorrow — led by 640 calls and 635 puts. 53.5 percent of the volume is in the Weeklys and 25.5 percent in the October contracts that expire at the end of next week. So, only 21 percent of the volume in Apple options today is in options contracts that have more than 8 days of life remaining. However, one noteworthy trade in the November term, which is one of the largest trades in Apple today, is a 680 – 710 call spread for $5.60, 2000X on ISE. It’s an opening position, according to ISEE (bot for a firm account), and seems to express confidence that the stock can recover the recent losses through the November expiration — which is in 36 days.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.