Duan Yongping Bets Big on Apple with 18% Return Strategy

Renowned investor Duan Yongping recently disclosed his latest investment strategy, which involved selling 999 put options for Apple Inc. (AAPL.US) with a strike price of $195 and an expiration date of January 16, 2026. This move generated a total of $1.44 million in option premiums, with an expected annualized return of approximately 18%.

By selling these put options, Duan is essentially betting that Apple's stock price will remain above $195 by the expiration date. If the stock price falls below $195, he will be obligated to purchase Apple shares at the strike price of $195. This strategy indicates Duan's confidence in Apple's stock value at the $195 level and his bullish outlook on the company's future prospects.

Duan's investment decisions have garnered significant market attention, particularly after his fund, H&H International Investment, made substantial portfolio adjustments in the first quarter. The fund reduced its holdings in Apple, Google, and Alibaba, while increasing positions in Pinduoduo, Occidental Petroleum, and adding new positions in Microsoft, NVIDIA, and TSMC. Despite these changes, H&H International Investment still holds a significant number of Apple shares, demonstrating continued confidence in the company's long-term prospects.

Apple's recent financial performance has been strong, with the company reporting revenue of $95.4 billion and net income of $24.8 billion for the second quarter of its 2025 fiscal year. This represents a year-over-year increase of 5.08% in revenue and 4.84% in net income. The robust financial results, combined with Duan's bullish stance, suggest that Apple's stock may continue to attract investor interest.

The positive market sentiment towards Apple is further supported by the company's strong sales performance in China, driven by the 618 shopping festival and government subsidies. This has led to expectations of significant revenue growth for the second quarter, potentially reaching $4 billion. Such positive developments are likely to provide short-term support for Apple's stock price, especially given its current valuation, which is near a two-year low.