An Unidentified Options Trader’s Multi-million Dollar Bet on Apple’s Short-term Rebound
The stock market is known for its volatility, and every now and then, there are trades that leave the financial world in awe. One such trade that made headlines recently was an unidentified options trader’s bet on a short-term rebound in Apple Inc.’s (AAPL) shares. This trade, worth millions of dollars, was set to reap a substantial profit for the trader as AAPL’s shares soared on Monday following the Trump administration’s weekend move to grant tariff exclusions for smartphones.
Background
The US-China trade war has been a significant concern for the tech industry, with many companies, including Apple, facing the brunt of the tariffs. The tariffs on smartphones were set to increase from 10% to 15% on September 1, 2019. The news of the tariff exclusions came as a relief to many in the industry, and the markets responded positively.
The Trade
According to reports, the unidentified trader bought a large number of call options on AAPL, with a strike price of $225 and an expiration date of September 20, 2019. The trader reportedly paid around $10 million for these options. On Monday, as the news of the tariff exclusions broke, AAPL’s shares surged, and the trader’s bet paid off handsomely.
Impact on the Trader
The trader’s bet on AAPL paid off big time, with the options now worth around $25 million. This represents a profit of around $15 million for the trader. Such large profits are not unheard of in the stock market, but they are still impressive, especially in the context of the current trade tensions.
Impact on the World
The news of the tariff exclusions was a positive one for the tech industry and the markets as a whole. AAPL’s shares were not the only ones to benefit from the news. Other tech companies, such as Microsoft Corporation (MSFT) and Cisco Systems, Inc. (CSCO), also saw their shares rise on Monday. The broader S&P 500 index also rose by around 1% on the day.
Conclusion
The unidentified options trader’s bet on a short-term rebound in AAPL’s shares is a reminder of the volatility of the stock market and the potential for significant profits, even in uncertain times. The news of the tariff exclusions was a positive one for the tech industry and the markets as a whole, and it will be interesting to see how this development unfolds in the coming days and weeks.
- An unidentified options trader made a large bet on a short-term rebound in AAPL’s shares
- The bet paid off handsomely as AAPL’s shares surged on Monday following the news of tariff exclusions
- The trader reportedly made a profit of around $15 million
- The news of the tariff exclusions was a positive one for the tech industry and the markets as a whole
- AAPL’s shares were not the only ones to benefit from the news
