Stock price soared more than 7% overnight! Apple call options are bought out, trading volume hits a near three-year high
Apple's stock price surged 7% overnight, hitting a historic high. The trading volume of call options hit the highest level in 2021, reaching 2.4 million contracts, four times the average trading volume of the past month. The change in implied volatility and the large number of call options trading imply investors' optimistic outlook on the stock price. The stock price has exceeded the highest strike price, making these contracts valuable. Investors' views on Apple's artificial intelligence plans are becoming optimistic, driving the stock price rebound. At Tuesday's close, Apple's stock price rose 7.26% to $207.15
According to Zhitong Finance and Economics APP, as Apple (AAPL.US) stock rebounded from Monday's decline to hit a historic high, the number of call options traded on the stock reached the highest level since 2021.
As of 2:24 pm New York time, the number of call options traded on this tech company was approximately 2.4 million, four times the average trading volume on any trading day in the past month. The number of call options is twice that of put options, with most trades focusing on contracts expiring on Friday.
Susquehanna International Group stated that changes in implied volatility and a large number of call options imply "buying call options while the stock price is volatile." Demand indicators for put options and call options also show a similar trend, with investors bidding higher for the latter. The most traded call options have strike prices of $205 and $200 respectively. By midday, the stock price had exceeded the strike prices, making these contracts worthwhile.
On Monday, after the Apple Worldwide Developers Conference, the stock price experienced a decline, prompting investors to buy Apple options. The company's artificial intelligence plans initially failed to impress Wall Street, leading to a 1.91% decline on Monday. However, as investors became more optimistic about this event, the stock price saw a significant turnaround on Tuesday - a common trend following Apple announcements in the past. By the close of trading on Tuesday, Apple had risen by 7.26% to $207.15.
Gareth Ryan, Managing Director of IUR Capital, stated: "This appears to be another instance of 'following speculative trends' trading that has recently affected many companies. The difference is that Apple can actually prove this through the launch of artificial intelligence. None of the meme stocks can prove that their price movements are rational."