Unusual Options Activity In Apple

Shares of Apple (AAPL – Get Report) started off lower on Monday on the back of a negative analyst report. In midday trading, shares are still down more than 2%, just under $200 per share.

Analyst Jun Zhang of Rosenblatt Securities cut his rating on Apple to sell from hold, while maintaining his $150 price target. Based on Friday’s close, that would imply about 26% downside for the iPhone maker.

Zhang contends that Apple will undergo a “fundamental deterioration over the next 6 to 12 months.” He further adds that iPhone and iPad growth will be disappointing in the second half of 2019, while Apple’s other products won’t be meaningful enough to make up the shortfall.


We have been hearing this rhetoric for many months, ever since Apple said Apple announced on November 1st that it would no longer be reporting iPhone sales numbers…meaning iPhone units are no longer growing and will start to decline.

Nevertheless, this regurgitated newsflash was enough to send Apple stock down 2% for the day and cause the Smart Money to rush into some short term put options.  Today the Smart Money bought over 35k of put options with a strike price at $185 that expire on August 2nd

This means the Smart Money only make profits if the Apple’s stock price declines another 7%.  Will the Smart Money be right, stay tuned?

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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