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Options Investors Make Big Bets on Apple

Monday, 30 Jul 2012 | 3:42 PM ET

With shares just south of the psychologically important $600 level, institutional investors are making big bets on Apple .

According to Fast Money trader Jon Najarian’s proprietary heat seeker, a much larger than usual number of Apple 600 calls traded.

That’s a bullish bet that by the third week in August, Apple is trading above $600.

“I believe most of the action is due to increased belief that iPhone 5 and Mini iPad will be announced on the same day, September 12,” says Najarian, co-founder OptionMonster.com.

And if you’re looking to trade the trend, Najarian says you still have time. “I’m a buyer at current levels. I believe the stock has a lot of room to run.”

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Best Buy

Meanwhile, Najarian tells the heat seeker has identified upside activity in Best Buy.

“A big investor bought the Sept 20 calls and sold the Sept 13 puts,” he says. That's a bullish bet; one that suggests Best Buy trades above 20 by the third week in September.

Najarian thinks the activity is tethered to a belief that Best Buy could go private.

According to the WSJ, founder Richard Schulze is working with a Wall Street bank to explore taking the electronics retailer private. The paper also says a buyout offer would likely have to approach $11 billion to entice other shareholders to sell.

Trading Apple Mania
Discussing Apple's earnings miss, with Toni Sacconaghi, Bernstein analyst. [Apple] gave guidance that was uncharacteristically aggressive," he says; and the FMHR traders discuss Deutsche Bank's downgrade on JPMorgan.



Posted by CNBC's Lee Brodie

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Trader disclosure: On July 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long MCD; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long CSCO CALL SPREADS; Jon Najarian is long WMT CALL SPREADS; Jon Najarian is long V CALL SPREADS; Jon Najarian is long F CALL SPREADS; Jon Najarian is long NXY CALL SPREADS; Jon Najarian is long SHAW CALL SPREADS; Jon Najarian is long BBY CALL SPREADS; Jon Najarian is long HLF CALL SPREADS; Jon Najarian is long GLUU; Jon Najarian is long CIGX; Jon Najarian is long CBOE; Jon Najarian is long CME

For Dan Fuss
Nothing to Disclose

For Gemma Godfrey
Nothing to Disclose

For Toni Sacconaghi
Bernstein currently makes a market in the following companies AAPL / Apple Inc.

For Mike Harris
Mike Harris is long GOLD COMEX FUTURES


CNBC.com with wires.

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