Apple Options Spike, Gain 1,100 Percent Overnight

Wednesday, 14 Mar 2012 | 5:59 PM ET

No question about it, Apple stock is hot — and Wednesday saw extreme action on the options side.

“We traded over 19½ million contracts total today,” OptionMonster.com co-founder Pete Najarian said on “Fast Money.”


SLIDESHOW: Top Apple-Related Stocks for 2012


Yahoo Proxy Fight & Crazy Apple Options
A possible proxy fight with Yahoo, and the wild options action on Apple's new all-time high and how to play it, with the Fast Money crew.

On a day in which Apple accounted for 10.7 percent of all options volume, Najarian said that 1.3 million calls were traded along with 700,000 puts.

“If you look from the 580, 585, 590, 595, 600 in March alone, you’re talking about 50,000 to 90,000 in each individual strike,” he said.

Najarian shared two options trades with big overnight returns:

Weekly $600 calls saw a net 1,100 percent gain, going from 28 cents Tuesday night to $3.08.

Weekly $590 calls saw a net 840 percent gain, going from 69 cents to $5.08 in the same period.

Najarian said that while Apple watchers sometimes point to low volume, which was an argument that didn’t tell the whole story.

“When they talk about share volume being down, my argument always is, yeah, but it’s going over to the options markets,” he said. “This is one of those examples of that.”

Wednesday wasn’t a low-volume day, however.

Apple stock closed up 3.8 percent at $589.58 on volume of 50.5 million shares.

On Feb. 15, the busiest trading day in Apple shares, 53 million shares changed hands.

Najarian said that the heavy activity tells him something about how investors are playing Apple.

“People are coming in and trading this stock individually day by day,” he said.

Trader Guy Adami also looked at a couple of downstream plays.

Qualcomm was a good candidate for a long position above $62 per share. It closed up 0.4 percent at $65.11.

Broadcom, however, had trouble breaking above $38. It was down 1.4 percent, closing at $36.85.

Got something to to say? Email us at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our website, email fastmoney@cnbc.com.

Trader disclosure: On March 14, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Najarian is long AAPL; Najarian is long C calls; Najarian is long INTC; Najarian is long YHOO; Najarian is long JOYG calls; Najarian is long COP; Najarian is long PEP; Najarian is long HPQ; Najarian is long LULU calls; Finerman is long BAC; Finerman is long JPM; Finerman is long TGT; Finerman’s firm is long AAPL; Finerman’s firm is long JPM; Finerman’s firm is long WMT; Adami is long C; Adami is long GS; Adami is long INTC; Adami is long AGU; Adami is long NUE; Adami is long BTU

For Ron Insana
No disclosures

For Mike Khouw
No disclosures

For Dennis Gartman
Gartman is long gold in Yen terms

For Abigail Doolittle
No disclosures

  Price   Change %Change


Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report