Options: Apple Traders Look for Rally
Apple has a major calendar event on Monday, but traders are looking for a pop even sooner.
The weekly 345 calls expiring this Friday were the most active contracts in the tech giant yesterday. They were at the money early, but then became in the money as AAPL rallied 3.09 percent to close at $347.83.
Those calls started trading down around $0.53 but finished the session as high as $4.05, according to OptionMonster's real-time tracking systems. Volume blew past 35,500 and was almost 9 times the open interest in the strike.
Look for the listing of new weekly options tomorrow to really surge because they'll be the cheapest way to ride AAPL through the June 6 Worldwide Developers Conference.
This stock has been a steady performer in the last five years, but as any diehard follower knows, even the S&P 500 has outperformed the tech giant so far in 2011. The shares are up just 6 percent, as it seems that a combination of CEO Steve Jobs' health and supply-chain disruptions have taken their toll.
News that Jobs will kick off the developers conference, as well as introduce AAPL's iCloud service on Monday, helped boost the stock yesterday. He's also expected to unveil the eighth major release of the Mac OS X operating system, as well as iOS 5, which powers the iPad.
Volatility has also picked up, moving to 19 percent from 16.8 percent in the weeklies, and even higher in the regular monthly contracts that expire on the June 17.
Disclosure— Najarian is long AAPL.
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.