AAPL Options Signal Bullish Bias: Focus on $270 Calls as RSI Dips Near Oversold Levels

• AAPL trades at $256.39, down 0.7% from its 52-week high of $280.90
• RSI at 11.65 suggests extreme oversold conditions, while Bollinger Bands show price near the lower bound
• Put/Call Open Interest ratio at 0.69 highlights heavy call buying at $270 and $280 strikes

Here's the takeaway: AAPL's options market is painting a picture of cautious optimism. While technicals show a short-term bearish engulfing pattern, the options data—particularly heavy call open interest at key strikes—hints at a potential rebound. Let's break down what this means for traders today.

Bearish Technicals Clashing with Bullish Options Positioning

The bearish engulfing candle and RSI near oversold levels ($11.65) usually signal a possible bounce. But options data adds nuance:

• This Friday's OTM calls: The $270 strike (OI: 95,429) and $280 strike (OI: 67,170) show heavy call buying. This suggests some players are pricing in a rebound to at least $270 before expiration.
• Deep puts at $150–$200: While these strikes are far out (AAPL hasn’t traded below $210 in years), the put OI (63,343 at $150!) indicates hedging or speculative bearish bets.
• No whale moves: Block trading data shows no large institutional trades, meaning this setup is driven by retail/institutional options positioning rather than sudden news-driven fear.

No News, But Options Tell a Story

With no recent headlines to drive sentiment, the options market’s focus on $270–$280 calls suggests positioning for a technical rebound. Retail traders might be buying calls ahead of the RSI potentially finding support at oversold levels, while institutions could be using calls for downside protection as AAPL’s 200DMA ($233.89) looms below.

Actionable Trade Ideas for Today

For options traders:

• Bullish play: Buy AAPL20260116C270 (this Friday’s $270 call) if price breaks above $258.90 (today’s high). The RSI oversold reading and heavy call OI at $270 imply a potential price target.
• Bearish hedge: Buy AAPL20260116P255 (next Friday’s $255 put) to protect long positions if the stock tests the lower Bollinger Band ($254.78).

For stock traders:

• Entry near $254.78: If price holds above the lower Bollinger Band, consider buying the dip with a target at $270 (current call-heavy strike). Use $250 as a hard stop if the breakdown occurs.
• Breakout play: If AAPL closes above $258.90 today, push entry to $257–$258 with a $265 target to capture momentum.

Volatility on the Horizon

The key battle today is whether AAPL can hold above $256.06 (intraday low). A close below $255 would trigger a test of the 200DMA ($233.89)—a level that could attract algorithmic buying but might also accelerate selling. Conversely, a rebound above $258.90 could ignite the call-heavy $270 strike, turning today’s options positioning into tomorrow’s profit. Either way, the options market has already priced in extremes—now it’s about execution.