AAPL Options Signal $260 Call Contention as Buffett Sells, AI Alliances Emerge – Here’s How to Play the Volatility

• Warren Buffett’s 74% Apple stake cut raises questions about near-term sentiment.
• $260 call options dominate open interest ahead of Friday’s expiry, hinting at a potential breakout.
• India antitrust case looms but won’t derail Apple’s AI-driven earnings catalyst on Jan 28.

The market is watching Apple like a hawk today. With the stock trading at $259.64—just 0.12% below its opening price—options data tells a story of cautious optimism. Call open interest is 324,447 contracts, nearly double the put volume (226,306), but the real drama is at the $260 strike. That’s where a block trade of 1,000 calls (AAPL20260116C260) hit the tape, worth $162,000. Think of it like a whisper in a crowded room: someone’s betting the stock will punch above $260 by Friday.

Call Buyers Stake Claims at $260, Puts Tell a Different Story

Let’s break down the options chessboard. This Friday’s top OTM calls are stacked at $260 (62,389 OI), $265 (56,772), and $270 (95,364). The $270 strike is especially telling—it’s 5% above today’s price, yet it’s the most popular call. That’s not just bullish; it’s aggressively bullish. Meanwhile, puts are buried deep in OTM territory ($150–$210), with no real liquidity until $255. The put/call ratio of 0.6975 (call-heavy) suggests investors are hedging downside risk but aren’t pricing in a crash.

The block trade at $260 adds intrigue. Buying 1,000 calls at this strike could signal a whale expecting a short-term pop—maybe from the AI partnership news or a pre-earnings rally. But don’t ignore the risks: the RSI is at 19.06, screaming oversold, and the MACD histogram is negative. If the stock fails to break $260, those calls could expire worthless.

AI Alliances and Buffett’s Exit: What’s the Real Story?

Apple’s partnership with Google to integrate Gemini into Siri is a double-edged sword. Optimists see it as a lifeline for Siri’s relevance, but skeptics worry about ceding AI control to a rival. Meanwhile, Buffett’s exit from Apple—despite it still being 22% of Berkshire’s portfolio—raises red flags. He’s not selling because Apple is broken; he’s pivoting to Alphabet, which now has a $4T valuation. That’s a strategic shift, not a death knell for AAPL.

The India antitrust case is a wildcard. A $38B fine would be catastrophic, but Apple’s legal team is fighting hard. The hearing on Jan 27 is a key date to mark. For now, the stock isn’t pricing in that risk—yet.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic For options traders: Buy the AAPL20260116C260 calls if the stock breaks above $260.50. Target $270 by Friday’s close. If you’re bearish, a put spread at $255 (AAPL20260123P255) and $245 (AAPL20260123P245) could profit if the stock drops below $255.For stock traders: Consider buying near $259.19 (intraday low) if the 200D support at $211.10 holds. A breakout above $265 would target the 30D resistance at $274.24. Alternatively, short near $261.03 if the 30D MA at $271.88 fails to hold.Volatility on the Horizon: Earnings as the Final Catalyst

Apple’s Q4 earnings on Jan 28 are the ultimate wildcard. Analysts expect $1.85 EPS and $102.5B revenue, but the AI partnership and India case could swing results. If the stock gaps up post-earnings, the $280 calls (AAPL20260123C280) could become king. But if the antitrust news hits, the $250 puts (AAPL20260123P250) might see a surge.

The bottom line? Apple is in a short-term bearish trend but with long-term range-bound potential. The options market is pricing in a $260–$270 battleground for the next week. Play it smart: use the AI partnership as a bullish lever, but keep a close eye on the India case. And if you’re holding calls, don’t let them expire—time decay is your enemy.

Final Take: This is a stock at a crossroads. Buffett’s exit is a caution flag, but the AI alliance and earnings report could be tailwinds. For now, the $260 strike is the line in the sand. Cross it, and the bulls take control.