Apple's Options Signal Bullish Rebound Potential: Key Strikes and Strategies for Jan 16–23 Expirations

• AAPL trading near $260.44 with RSI at 19.8 (oversold) and MACD crossing below signal line
• Put/Call OI ratio at 0.705 favors calls, with heavy call OI at $270, $280, and $310 strikes
• Block trades show large put purchases at $270 and $260 ahead of Friday’s expiry

Here’s the thing: Apple’s options market is sending mixed signals. On one hand, technicals hint at a short-term bounce. On the other, heavy call open interest at key strikes suggests smart money is pricing in a potential breakout. Let’s unpack what this means for your strategy.

Bullish Pressure at $270–$280, But Puts Signal Caution

The options chain tells a story of cautious optimism. For this Friday’s expiry (Jan 16), AAPL20260116C270 and AAPL20260116C280 have 98,388 and 73,624 open contracts respectively. That’s not just noise—it’s a vote of confidence from institutional players. But don’t ignore the puts: AAPL20260116P270 and AAPL20260116P260 saw block trades totaling 2,500 contracts, hinting some big players are hedging against a pullback.

The RSI at 19.8 is screaming oversold, and price is testing the lower Bollinger Band at $257.76. If buyers step in here, the 30D moving average at $273.24 becomes a critical target. But the MACD histogram (-1.65) still trends downward—don’t assume a straight-line rally.

News Flow: Services Growth and AI Alliances Fuel Long-Term Optimism

Apple’s services segment is now 26% of revenue, with AI partnerships like the Google deal adding credibility. Analysts expect services to grow 15% in 2026, which explains why calls at $270+ are getting love. But here’s the catch: the stock’s P/S ratio (8.27x) still lags the sector average. The good news? Earnings surprise expectations are rising—Zacks forecasts a +0.41% beat in Q1. If Apple nails its numbers on Jan 29, this could validate the bullish options positioning.

Actionable Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders, consider these setups:

• Bull Call Spread: Buy AAPL20260116C270 (strike price $270) and sell AAPL20260116C280 to cap risk. If AAPL closes above $261.81 by Friday, this spread could capitalize on the oversold bounce.
• Long-Term Call: For next Friday’s expiry, AAPL20260123C275 offers leverage if the AI narrative gains traction. The 30D support/resistance at $273.70–$274.24 could act as a catalyst.

For stock traders, here’s a concrete plan:

• Entry near $257.76 (lower Bollinger Band) with a stop below $258.39 (intraday low). Target $273.70 (30D support) as a first profit zone.
• Alternative: If AAPL breaks above $261.81 (intraday high), consider adding at $263–$265 to ride the short-term momentum.

Volatility on the Horizon: Balancing Short-Term Caution With Long-Term Optimism

The next 10 days will test Apple’s resolve. While the options market is pricing in a $270+ move, the MACD and RSI suggest a pullback isn’t out of the question. Use the block trades at $260 and $270 as a guide—those puts could act as a safety net if the AI hype falters. But if services revenue surprises to the upside on Jan 29, watch those $310 calls ($54,886 OI) come to life. This is a stock at a crossroads: short-term technicals vs. long-term fundamentals. Your job? Position for both.