AAPL Options Signal Bullish Bias: Key Strikes at $287.5 and $290 Highlight Upside Potential Amid CLSA's $330 Target

• CLSA raised Apple’s price target to $330, citing record iPhone sales and leadership changes.
• Brown Advisory notes 166 hedge funds hold AAPL, with Q3 revenue up 8% YoY to $102.5B.
• Options data shows call dominance (put/call ratio: 0.68) with heavy open interest at $287.5 and $290 strikes.
• Key insight: The options market and fundamentals align for a bullish bias, but near-term volatility could test support at $270.

What the Options Chain Reveals About Institutional Bets

The options market is painting a clear picture of where smart money is leaning. For Friday’s expiring contracts, AAPL20251205C2875 (287.5 call) and AAPL20251205C290 (290 call) dominate open interest, with 55,817 and 38,699 contracts outstanding respectively. This suggests institutional players are hedging or positioning for a short-term pop above $285—a level that would snap Apple’s 200-day moving average (currently at $227.99) and validate the long-term bullish trend.

But it’s not all one-way bets. The AAPL20251205P280 (280 put) has 18,534 open contracts, hinting at some downside protection. Meanwhile, block trades like the AAPL20251017C240 (240 call) bought for $431,200 signal confidence in Apple’s ability to outperform even in a volatile macro environment. The risk? If the stock stumbles below $270, the put-heavy OI at that level could accelerate selling.

How CLSA’s $330 Target Fits Into the Bigger Picture

CLSA’s upgrade isn’t just a number—it’s a signal. Raising the target to $330 (a 15% upside from current levels) reflects confidence in Apple’s ecosystem dominance and AI integration plans. Combine that with Brown Advisory’s observation that hedge funds are piling in, and you’ve got a self-fulfilling prophecy: more buyers = higher prices = more buyers. But don’t ignore the elephant in the room: the mention of a “rival device” in CLSA’s note. While Apple’s moat is strong, a price war in the smartphone sector could pressure margins. For now, though, the Street is betting on execution.

Actionable Trade Ideas for Today’s Move

For options traders, the most compelling setup is a bull call spread using AAPL20251212C2875 (287.5 call, 8,341 OI) and AAPL20251212C295 (295 call). Buy the 287.5 strike at ~$10.50 and sell the 295 call at ~$6.50 for a net debit of $4. This caps risk but aligns with the 35x P/E multiple CLSA is using for its 2027 target. If Apple holds above $279, this trade could yield 30%+ returns by Dec 12.

Stock traders should consider scaling into long positions near $270 (200D support) with a hard stop below $265. A breakout above $285 would target $295, where the 200D MA and key resistance converge. For the risk-on crowd, a buy-write strategy using AAPL20251212C2875 could generate ~7% yield while capping upside.Volatility on the Horizon: Positioning for a Bullish Breakout

The data tells a story of conviction. Technicals are aligned with fundamentals, and options activity suggests a near-term inflection point. But don’t mistake this for a “buy and hold” narrative—Apple’s rally depends on sustaining iPhone momentum and AI hype. If the stock closes above $285 this week, the 200D MA becomes a floor, not a ceiling. For now, the path of least resistance is up, but keep an eye on the $270 support. A break below that would trigger a reevaluation of the bullish case. In a market where sentiment shifts faster than stock prices, positioning for both scenarios is key.