$215 Million Apple (AAPL) Stock Options: 227% Profit Again?

on the last trading day we detected an unusual trade on Apple stock options worth $215 million and so in this video we will Analyze This unusual option activity to find out how this wealthy investor is now trading Apple stock are they bullish and buying or bearish and selling so that we can also trade in the same direction to make money while the rich are getting richer on Wall Street because as we all know the rich have more access to information sometimes leaked Insider information to make better financial decisions no wonder the rich get richer so without further Ado let's dive into the data as usual as we can see here on the options time and sales tape yesterday September 10th these four options were being traded at the same time 1223 at the 18c Mark 11,000 65 contracts for the September 20 options at the 220 strike calls the October 18 options at the 195 strike puts and the November 15 options at the 225 strike call and the 245 strike calls so what does this mean because this type of data can get very confusing many other websites and scanners cannot decipher this data but because we have a lot of of experience doing this we will go through all four of these options so that we can find out what this wealthy investor is doing are they bearish or bullish so one of the first steps we need to figure out is which of these options are closing trades and which ones are opening trades and so to do that we need to look back at historical data and that is what we always do when we analyze this type of data because we cannot just simply look at the current data we have to look at what was happening previously and so you can see here September 10th on the day that this was being traded we need to figure out what was the exact open interest previously that happened on the day that they traded these options and so we can see that the open interest for these 220 strike calls 65,000 contracts now if they had closed out of these trades we would have a decrease in 65,000 and so let's take a deeper look at this option for these September 20s and so we can see here at the 220 strike calls we now have 58,000 open interest so it has decreased meaning these options are closing trades now let's take a look at the October 18 options the puts that they had traded at the 195 strike puts we can see here there was only 11,218 open interest and so let's take a look at what has happened now the next day October 18 options the data has updated and so you can see that there is now 24 ,000 open interest meaning these were opening trades and this makes a big difference because these put options actually increase the value of this trade substantially and we'll go over that as soon as we go over the last two options to find out if those are opening trades now that we know that these October 18 options are opening trades we can see that these November 15 options that happened at the 225 strike calls we have 11,39 open interest we also have an open interest of 45,000 for the 245 strike calls so let's take a look at these two options to see if they've increased or decreased November 15 we can see here these 225s have increased 24,000 open interest now and for the 245s also increased 54,000 now and so now we know that these two options are also opening trades you can see that we are in the same position POS stands for position green means buy red means sell because based on our analysis they were buying and selling these options over here opening these trades and don't forget the October 18 options that makes a big difference because they were selling these put options to open at the 195 strike puts and so when we analyze their trade you can see here that this trade by the way this trade here over here is our previous Apple trade that we shared on our channel it's right over here back on May 7th and you can see it is profitable now because back then Apple was trading at about $181 per share so if you missed out on our last Apple analysis we'll put a link at the top here make sure to subscribe and hit the Bell icon so you don't miss out on these very profitable opportunities now you can see how much profit we've made on this previous trade so far on the profit loss graph we can see here $1,169 of profit per trade and we had spent 5113 per trade and so if we calculate the profit percentage 1,169 profit divide by the cost 5113 * 100 is 227% profit so far and so that is how use these unusual options to make sure that we consistently beat the market by making a lot more than 100% because our risk reward is always in our favor we can always make more than what we could lose now keep in mind the trade that we are discussing today on Apple is still higher risk in comparison to the trades that we share on our website if you want access to better trade ideas not like this one here where you can make a lot more then make sure to go to our website we'll put a link at the top here where you can gain access to more of these unusual option trades because not all of these trades will be profitable even this one might be a loss but as long as we diversify with higher quality stock picks based on this type of data analysis then we can become more profitable in the long term now for the current trade what is going on with this trade well you can see here on this graph the x axis represents the share price of Apple and on the Y AIS represents the profit loss note the zero break even line here and so as the share price goes up this actually becomes more profitable which means this wealthy investor is going long bullish on Apple by trading these options if it goes down it is a loss but it is hedged you can see that the blue line is very flat here so that it does not lose very much if it starts to drop down here because they sold the 195 strike puts over here and by selling these puts they are essentially saying they're willing to own 100 shares at the strike price which means each contract require $119,500 of buying power and since there was a total of about 11,065 contracts we multiply that out and we get a total trade that required $215 million and you see how important it is to find out whether or not these put options were opening trades or not because if we did not have these put options this trade would actually have been less than $10 million which actually decreases our probability of profit on these trades but keep in mind even though this is a 215 million trade but because apple is more than a trillion dollar market cap company this is still a drop in the bucket and that is why this is a lower chance of profit trade in comparison to the trades that we share on our website and that is why we simply followed the trade but we did not sell the put options because it takes a lot more buying power and we wanted to use position sizing to manage our risk so we simply bought the 225 strike calls as we mentioned earlier same position here and we sold the 245 strike calls and so when we Analyze This trade you can see here that this is a vertical call spread it only cost about $641 of debit each and so you can see that if we did not take into account these put options the total trade cost that we would have estimated this to be would be 641 time the 11,065 contracts what would have been about $7 million so much less than the $215 million that we have found out was actually being put on the table so a big difference here and so that is why it's very important to actually look at the data and not just use scanners to get very superficial data analysis which is why many people do not trade unusual option activity very accurately and so that is why we were able to do so to make consistent profits and beat the market so if you want more of these trade ideas with stronger data so that we can increase our probability of profit then make sure to go to our website put a link at the top here and make sure to watch our last apple video May 7th when we published it was right over here and we'll put a link to that video over here where you can find out in hindsight how we were able to analyze St data to make more than 200% profit on that trade so far as usual please smash the like button subscribe if you haven't take care and have a wonderful day