Jon Najarian’s Unusual Options Activity: More Upside Ahead For 1 Tech Name

Jon Najarian joined CNBC’s Halftime Report today to report on more Unusual Options Activity. This time, it was in Apple ($AAPL), Vodafone ($VOD), and the I-Shares China Large Cap Index ($FXI).

I-Shares China Index ($FXI): Big LEAPS

These $FXI calls are unusual not only because of the purchase cost, but because of that gap in the open interest. 11,060 purchased against an open interest of just 582 in February! Those calls are also interesting because of the pain that Chinese stocks have been put through during 2021. Even titans of industry like Alibaba ($BABA) is down 52.59% Y0Y. That’s even after recovering 12% off of it’s lows of the week. Investors here are stepping in and buying time using LEAPS. LEAPS stand for Long-Term Equity Anticipation Securities, meaning they’re options that expire at least one-year out in time. Clearly these investors think there’s longterm opportunity overseas.

Apple ($AAPL): Investors double down

The case for $AAPL is decidedly different. A hedge fund darling, Apple has been on a tear higher this week, currently up 10.39%. For a company with a $2.87 Trillion market cap, it’s extremely rare to see movement of this size. Typically this would be cause for investors to trim their positions, to take profit. Not these investors, they are ADDING! Yesterday a single investor made a $13 million purchase in $AAPL $200 strike calls expiring in March. Today a purchase for near $13 million was made for $AAPL $175 strike calls expiring next week. That’s extremely bold!

Listen to Jon’s thoughts about those bits of unusual option activity AND a bonus: Jon’s take on Gamestop ($GME) earnings tonight.