Apple shares have come under serious pressure in the past month. And one big trader appear to be betting on more downside for the tech giant.
In a big Thursday options trade, one trader appeared to bet $5.5 million that Apple is going even lower.
Specifically, the trader bought 7,255 January 112.86-strike put contracts at a price of $7.55 per share (for a total outlay of $5.48 million, given that each contract controls 100 shares).
Since this trade will only make money if Apple shares fall below $112.86 by more than the $7.55 laid out, it implies an expectation that Apple shares will fall below $105.31 by January—or 8.5 percent lower than current levels.
Of course, while the trade is public, the intentions of the trader and the content of the firm's portfolio are not.