AAPL Options Signal $270 Bull Call Play as RSI 22 Suggests Oversold Rebound

• Current price: $260.79, up 0.55% from open
• RSI at 21.94 indicates extreme oversold territory
• Put/Call OI ratio of 0.71 shows 41% more bullish positioning

Here's the takeaway: Options traders are betting on a rebound above $270 while technicals hint at a short-term bottom. The stock shows upside potential if it breaks above the $261.30 intraday high, but faces headwinds from bearish momentum indicators.

Call Dominance at $270–$280 vs. Deep Put Bets: A Tale of Two Expirations

The options market is split between cautious optimism and extreme pessimism. For this Friday's expiration (2026-01-16), the $270 call (AAPL20260116C270) leads with 92,919 open contracts—nearly double the next strike. This suggests a consensus that Apple could test its 30D support/resistance zone ($273.70–$274.24) within days. Meanwhile, the $150 put (AAPL20260116P150) has 63,344 open contracts, showing extreme bearishness that feels more like a "deep out-of-the-money insurance policy" than active shorting.

The next Friday (2026-01-23) chain tells a different story. Call interest shifts to $275 (15,664 OI) while puts remain negligible. This hints at a potential consolidation phase after the immediate expiration. No significant block trades today, so we're looking at retail and institutional positioning in balance.

AI Alliances and Legal Shifts: How News Fuels Options Sentiment

Apple's partnership with Google's Gemini AI could be the spark traders are anticipating. While the $270 call positioning reflects optimism about Siri's AI upgrade, Raymond James' downgrade (32x P/E vs. 25x for Nvidia) adds caution. The Epic Games partial win in the App Store case is a mixed bag—it limits Apple's control but avoids a catastrophic ruling. Investors seem to price in the Google deal's upside while discounting the Raymond James bear case for now.

Strategic Entries: Calls on $270, Puts as Safeguards

For options traders:

• Bullish play: Buy AAPL20260116C270 if price breaks above $261.30. Target $275–$280 for 15–20% gains in 4 days.
• Conservative play: Buy AAPL20260123C275 next week if $265 support holds.
• Risk management: Buy AAPL20260123P250/AAPL20260123P260 put spread for $1531–$2897 premium, capping losses if the RSI 22 bounce fails.

For stock traders:

• Entry near $258.96 (lower Bollinger Band) with stop below $256.80.
• Target zone: $273.70 (30D MA) as a key inflection point.
• Alternative: Fade the bearishness with a short near $274.24 if RSI fails to break 30.

Volatility on the Horizon: Balancing AI Optimism and Valuation Concerns

The next 72 hours will test whether Apple's AI partnership can offset stretched valuations. If the $270 call buyers are right, we could see a 4.3% pop by Friday's close. But watch the 200D MA at $211.10—it's a long way down, but the RSI 22 level is screaming for a rebound. This feels like a "buy the rumor, sell the news" setup unless the Google integration delivers visible results soon. Either way, the options market has given us a clear roadmap: bulls are betting on $270+, bears are hedging at $150. Your move depends on whether you trust the AI hype or the Raymond James bear case more.