AAPL Options Signal Bullish Bias: Key Strikes and AI Partnership Catalysts

• Apple (AAPL) trades at $257.93, down 1.2% with RSI at 25.6—oversold territory.
• Options open interest shows 0.7 put/call ratio, favoring calls, with heavy call OI at $270 and $280 strikes.
• Block trade of 1,750 sold AAPL20260227C275 calls hints at hedging or profit-taking ahead.

Here’s the takeaway: AAPL is caught in a tug-of-war between short-term bearish momentum and long-term bullish fundamentals. The stock’s 30-day support at $257.03 aligns with Bollinger Bands, while the AI partnership with Google and analyst upgrades could fuel a rebound. Let’s break it down.

What the Options Chain Reveals About Sentiment

The options market isn’t whispering—it’s shouting. For this Friday’s expirations, call open interest peaks at $270 (99,541 contracts) and $280 (68,895), suggesting traders are pricing in a potential rebound above $260. Puts, meanwhile, are skewed to deep OTM strikes like $150 and $180, which feel more like speculative bets than immediate risk signals.

But here’s the twist: A block trade of 1,750 sold AAPL20260227C275 calls (expiring Feb 27) suggests institutional players are either hedging against a rally or locking in profits. That $275 strike is just 7% above today’s price—close enough to matter if the AI partnership sparks a surge.

How the AI Partnership Fuels the Narrative

Apple’s hand-holding with Google on Gemini isn’t just tech gossip—it’s a strategic lifeline. Analysts like Dan Ives are already framing this as a “catalyst” for growth, and the $325–$330 price targets from Bank of America and Evercore ISI imply a 15%+ upside.

But here’s the catch: The market isn’t fully priced in yet. The stock’s 200-day moving average ($211) is a long way off, but the 30-day MA at $272.65 acts as a psychological ceiling. If the AI hype lifts AAPL above $273 (30D support/resistance), watch for a test of the $280 call-heavy zone.

Actionable Trade Ideas for Today

For options traders, the most compelling plays are:

• Buy AAPL20260116C270 (this Friday’s $270 call): With 99,541 contracts in OI, this strike balances affordability and leverage. A close above $265 would give it legs.
• Buy AAPL20260123C275 (next Friday’s $275 call): If the AI narrative gains steam midweek, this 275 strike offers a slightly safer entry with time decay on your side.

For stock traders, consider:

• Entry near $257.03 (lower Bollinger Band) if price holds. Target $273 (30D support) as a first test, with $280 as a stretch if the AI buzz amplifies.
• Risk-reversal strategy: Buy the $270 call and sell the $250 put (next Friday’s expirations) to collect premium while capping downside risk.

Volatility on the Horizon

The next 72 hours will be critical. If AAPL breaks above $265, the call-heavy $270–$280 zone could ignite a short-covering rally. But don’t ignore the RSI: At 25.6, the stock is technically oversold, but oversold doesn’t always mean a bottom.

Bottom line: This is a high-conviction setup for bulls, but keep a tight stop below $256.71 (today’s intraday low). The AI partnership and analyst upgrades are tailwinds—but markets don’t always wait for logic to catch up.