It doesn’t happen too often: institutional money are placing extremely large bullish bets on Apple’s ability to blast through its 2015 highs of $134. Our system spotted a number of large call option trades placed today. In one of those trades, a trader purchased 19,000 June 2017 60 calls in several blocks spending a whooping $135m.
The institutional traders often use deep in the money calls when they are bullish on the stock. Clearly, they are betting that Apple will hit high all time highs soon following their impressive quarterly report several days ago.
Once the stock pierces through $133-134 resistance, a large number of momentum, break-out and trend following traders will join the party. This influx of the capital can further boost the stock’s price into $140-150 levels.