Bullish trade in Apple options reaps gains as shares jump on tariff exemption

Saqib Iqbal Ahmed

Mon, Apr 14, 2025, 8:10 AM 3 min read

By Saqib Iqbal Ahmed

NEW YORK (Reuters) - An unidentified options trader's multi-million dollar stake connected a short-term rebound successful Apple Inc.'s shares was acceptable to reap a sizable nett arsenic the iPhone-maker's shares soared connected Monday pursuing the Trump administration's play determination to assistance tariff exclusions for smartphones.

On Monday, Apple shares roseate arsenic overmuch arsenic 7% to a precocious of $212.94 earlier paring gains to commercialized up 4.5% astatine $206.05, aft the Trump administration, precocious connected Friday, granted exclusions from the steep reciprocal tariffs connected smartphones and a acceptable of different electronics products, a determination seen arsenic a large interruption for exertion firms specified arsenic Apple that trust connected imports from China.

The leap successful Apple's stock terms means a bullish options commercialized opened Friday for astir $5 cardinal was, connected paper, valued astatine astir $14 cardinal aboriginal connected Monday, a summation of 180%, according to a Reuters calculation.

Friday's bullish commercialized could person been a trader speculating connected a reprieve for Apple from tariffs oregon China successful wide implicit the weekend, Ophir Gottlieb, main enforcement of Los Angeles-based probe and fiscal exertion steadfast Capital Market Laboratories, said.

"That rumor was floating astir during marketplace hours connected Friday," helium said.

With Apple shares trading astatine astir $192.69 connected Friday, immoderate 35,000 of Apple 25, 210-220 telephone spreads appeared to beryllium bought for astir $5.25 million, according to a Reuters investigation of Trade Alert data. Call dispersed trades impact simultaneous buying and selling of telephone options.

Friday's dispersed commercialized successful Apple's options, 1 of the largest that time by contracts measurement for idiosyncratic banal options, was counting connected Apple shares rising successful the adjacent 2 weeks to decorativeness supra $210 by April 25, with a maximum imaginable summation capped astatine astir $30 million, if the shares roseate supra $220 by then.

Based connected Apple's stock terms astatine the clip of the trade, the trader was counting connected Apple shares to admit by arsenic overmuch arsenic 14% to decorativeness adjacent wherever the banal was trading earlier President Donald Trump's April 2 announcement connected tariffs.

About 10,000 of these spreads appeared to person been closed aboriginal connected Monday astatine an mean terms of astir $4, according to Trade Alert data.

Apple shares tumbled arsenic overmuch arsenic 23% successful the days pursuing the tariff announcement amid a market-wide selloff arsenic investors fretted implicit the concern interaction from the tariffs connected China, a large accumulation hub for iPhones.

The shares recovered crushed precocious past week arsenic markets rebounded and investors grew much optimistic astir Apple securing an exemption from tariffs.