Apple Options Breakdown: Traders Can’t Get Enough!


Traders are loving them some Apple (AAPL) today.

The stock is ripping up 3.9% on a perfect storm of good news.

First, one of the new iPhone 7's biggest rivals — the Samsung Galaxy Note 7 — has been recalled due to exploding batteries.

Yesterday, T-Mobile (TMUS) and Sprint (S) reported huge pre-order numbers, and now there is chatter about strong pre-order activity.

Today, CEO Tim Cook appeared on Good Morning America and discussed “augmented reality,” which he believes is more commercially viable than virtual reality. That's a clear nod towards a major new product category.

Plus, the new iPhone 7 and Watch Series 2 are getting very positive reviews.

But while the stock is ripping, the real action is in the options.

843K call options have traded today.

This is 2.5X the average daily volume over the past 10 days.

And it's not even lunch time yet!

The put-call ratio ratio for Apple options today is 0.29.

The 10-day average is 0.65.

So normally, about 1.5 Apple calls trade for each put.

Today, 3.4 calls have traded for each put.

We could be setting up one heck of a “sell the news” reaction but for now the ride is pretty nice!