Options Trading News

October 10, 2012  Wed 2:36 PM CT

As Apple fights its way higher against a negative tape, weekly contracts top today's option activity in the name.

AAPL is up 0.8 percent to $641, making up for yesterday's losses, but the stock is still well below last month's high just above $705. The company's earnings report is still two weeks away but, given all the option volume today, you'd think that the news was coming out tomorrow.

More than 594,000 options have changed hands, with 360,000 calls. Roughly half of that is in the weekly options expiring this Friday.

The top strikes are the Weekly 640, 645, and 650 calls, each with more than 23,000 contracts and volume that is more than double their respective open interest. The volume is mixed, though buying does outpace selling at the top 640 strike. Given the contract sizes, most of the action is in retail trading with small prints.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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