Open Positions Up On Apple Weekly Options

As option trading becomes more popular, weekly options appear to be following suit. Here’s an interesting article about the number of traders currently holding open positions in Apple weekly options.

On Thursday, options for Apple (AAPL) began trading for the January 27 weekly expiration – interesting to me because this option series will expire after the January 24 earnings announcement.

Kevin M. O’Brien wrote an interesting article about using a reverse iron condor spread to take advantage of a move in the stock one way or the other.

Here’s how the open interest in this option series looked as of the open on January 20, representing positions established on the first day these options traded.

Looks like lots of call positions were established. Open interest is highest at near where the stock closed on January 19, but there are a few thousand calls going up to the 470/475 area.

Remember that just because a contract is open doesn’t mean it’s a directional bet. In Kevin’s article, he notes he’s going to be selling (or already sold) a quantity of calls equal to those that he’s buying (at different strikes) and the same for the put options.

Even though many of these positions represent spreads, it’s interesting to see how the open interest is shaping up – and it will be more interesting to check in and review this data on Monday.

See Seeking Alpha for the rest of the story

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