Call options trading volume hit highest level since 2021 with about 2.4 million calls traded
Calls outnumbered puts two-to-one, with most activity concentrated on contracts expiring Friday
Investor sentiment shifted from negative to positive after Apple's developer conference
Apple shares soared to a record high on Friday, as call options traded volume hit its highest level since 2021. The tech giant saw about 2.4 million calls trade by 2:24 p.m. in New York, quadruple the average number that have changed hands in any given session throughout the past month.
The surge came after Apple's artificial intelligence plans initially failed to impress Wall Street, sending the stock down 1.9% on Monday following its developer conference. However, investors shifted to a more positive read on the event – a common trend that has played out after past Apple announcements.
Investors flocked to Apple options after shares sank Monday following its developer conference. The company's artificial intelligence plans initially failed to impress Wall Street, sending the stock down 1.9% in the session. Shares reversed sharply Tuesday as investors shifted to a more positive read on the event – a common trend that has played out after past Apple announcements.
The tech firm saw about 2.4 million calls trade by 2:24 p.m. in New York, quadruple the average number that have changed hands in any given session throughout the past month. Calls outnumbered puts two-to-one, with the bulk of activity concentrated on contracts expiring Friday.
Shifts in implied volatility as well as the high volume of calls suggested
Apple call options traded volume hit highest level since 2021
Number of calls traded was quadruple the average in past month
Calls outnumbered puts two-to-one
Most active strike prices were $205 and $200
Shares had already risen above strike prices by midday making contracts worthwhile
Investors shifted to positive read on Apple’s AI rollout after initial disappointment in developer conference
Accuracy
No Contradictions at Time
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The article contains an appeal to authority fallacy when it states 'Measures of demand for puts and calls pointed to a similar trend, with investors bidding up the latter relative to the former.' This statement implies that the measures are reliable indicators of investor sentiment, but this is not explicitly stated or proven in the article. Additionally, there are several instances of inflammatory rhetoric used by Carly Wanna and quoted sources such as 'jump on the speculative momentum bandwagon' and 'common trend that has played out after past Apple announcements.' However, these statements do not directly affect the author's assertions and are therefore not considered fallacies. No formal or dichotomous depictions were found.
]Measures of demand for puts and calls pointed to a similar trend, with investors bidding up the latter relative to the former.[
