Apple's Stock Attempts Bullish Break, Options Traders Hammer Calls

Apple Inc AAPL attempted a bullish break up out of the symmetrical triangle pattern in which it had been trading since making a new all-time high of $145.09 on Jan. 25. The months-long consolidation pattern had the stock trading into a tightening pattern, making lower highs and higher lows on the daily chart.

Despite a number of options traders purchasing large put contracts on the SPDR S&P 500 SPY, and Apple being a market leader, options traders took the other side of Apple and purchased a massive amount of call contracts. Together, these options traders bought over $4.22 million worth of bullish Apple calls.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

AAPL Price Action: Shares of Apple were trading up 1.2% to $132 at publication time.

See Also: 3 Key Building Blocks Of Apple's Health Care Quest

The Apple Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 10:34 a.m., Monday a trader executed a call sweep at the ask of 209 Apple options with a strike price of $125 expiring on Aug. 20. The trade represented a $186,010 bullish bet for which the trader paid $8.90 per option contract.
• At 10:35 a.m., a trader executed a call sweep at the ask of 242 Apple options with a strike price of $125 expiring on Aug. 20. The trade represented a $215,380 bullish bet for which the trader paid $8.90 per option contract.
• At 10:43 a.m., a trader executed a call sweep near the ask of 997 Apple options with a strike price of $131 expiring on June 25. The trade represented a $140,577 bullish bet for which the trader paid $1.41 per option contract.
• At 10:51 a.m., a trader executed a call sweep near the ask of 391 Apple options with a strike price of $125 expiring on June 25. The trade represented a $246,330 bullish bet for which the trader paid $6.30 per option contract.
• At 11:02 a.m., a trader executed a call sweep near the ask of 1657 Apple options with a strike price of $133 expiring on June 25. The trade represented a $107,705 bullish bet for which the trader paid 65 cents per option contract.
• At 11:13 a.m., a trader executed a call sweep near the ask of 824 Apple options with a strike price of $135 expiring on July 16. The trade represented a $117,008 bullish bet for which the trader paid $1.42 per option contract.
• At 11:20 a.m., a trader executed a call sweep near the ask of 3500 Apple options with a strike price of $140 expiring on July 16. The trade represented a $143,500 bullish bet for which the trader paid 41 cents per option contract.
• At 11:22 a.m., a trader executed a call sweep near the ask of 1860 Apple options with a strike price of $140 expiring on Sept. 17. The trade represented a $558,000 bullish bet for which the trader paid $3 per option contract.
• At 11:25 a.m., a trader executed a call sweep near the ask of 200 Apple options with a strike price of $145 expiring on July 16. The trade represented a $150,800 bullish bet for which the trader paid $7.54 per option contract.
• At 11:45 a.m., a trader executed a call sweep near the ask of 500 Apple options with a strike price of $130 expiring on July 16. The trade represented a $190,000 bullish bet for which the trader paid $3.80 per option contract.
• At 12:01 p.m., a trader executed a call sweep near the ask of 250 Apple options with a strike price of $125 expiring on July 16. The trade represented a $190,000 bullish bet for which the trader paid $7.60 per option contract.
• At 12:15 p.m., a trader executed a call sweep near the ask of 500 Apple options with a strike price of $135 expiring on Oct. 15. The trade represented a $302,500 bullish bet for which the trader paid $6.05 per option contract.
• At 12:18 p.m., a trader executed a call sweep near the ask of 300 Apple options with a strike price of $120 expiring on July 2. The trade represented a $369,000 bullish bet for which the trader paid $12.30 per option contract.
• At 12:40 p.m., a trader executed a call sweep near the ask of 693 Apple options with a strike price of $125 expiring on Sept. 17. The trade represented a $741,510 bullish bet for which the trader paid $10.70 per option contract.
• At 1:34 p.m., a trader executed a call sweep near the ask of 1411 Apple options with a strike price of $135 expiring on Aug. 20. The trade represented a $564,400 bullish bet for which the trader paid $4 per option contract.