A $30M Bet On A Big AAPL Swing

The Option Pit VIX Light Is Yellow: Volatility Is Going To Move.

Hey Traders,

Apple (Ticker: AAPL) reported earnings last week.

Since then, the stock has been a bit of a dud, with little-to-no movement …

AAPL implied volatility (IV) has fallen off as well.

Yet … I can tell you there is a strong move coming!

Here is how I know …

AAPL has been in a pretty tight range since it reported earnings last week.

The stock has failed to touch $150 and $140 over that period of time.

CBOE Equity VIX On Apple (Ticker: VXAPL), the VIX of AAPL, is stuck in a rut at around 26:

WIth that being said, I think there is a really strong move coming.

And I am not alone …

Big Money has been betting on AAPL moving.

There has been a huge buyer of AAPL straddles over the last two days …

On Tuesday, a trader bought 12,500 AAPL Oct. 145-strike straddles:

Likely the same trader followed that up with another 10,000 straddles on Wednesday:

In total, the trader has bought almost $30,000,000 dollars in AAPL option premium …

This is not a small bet on AAPL moving.

With the way this trade is set up, he or she likely thinks a strong $12-plus move is coming.

My bet would be on the downside, but I could be wrong.

Regardless … the small range AAPL has been trading in is likely to end. I would be a buyer of options here.

The Sep. 145-strike puts are about $3.70, and I think they are a buy …

Your Only Option,

Mark Sebastian


Leave a Reply

Your email address will not be published. Required fields are marked *

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