Apple Inc. witnessed a notable rebound in its stock price following tariff exclusions on smartphones and electronics announced by the Trump administration. On Monday, Apple shares surged by as much as 7% to a high of $212.94, eventually settling up 4.5% at $206.05. The exemption from tariffs is seen as a crucial development for technology firms that rely on imports from China.
The rise in Apple’s stock also impacted options trading activity. On Friday, a substantial bullish trade in Apple call spreads worth approximately $5 million anticipated a short-term stock increase. Early Monday, the trade was valued at about $14 million, representing a gain of 180%. The trade could have been motivated by speculation of potential tariff exclusions over the weekend. Analysts noted that rumors of a favorable outcome were circulating during market hours on Friday.
Some 35,000 call spreads on Apple’s stock for $210-220 were purchased Friday, suggesting expectations of significant appreciation in Apple’s stock price within the following weeks. While the maximum gain from this trade could reach $30 million if Apple shares exceeded $220, roughly 10,000 contracts were closed early Monday.
Apple’s stock had previously tumbled after tariff announcements stirred market-wide concerns regarding their potential impact on businesses with Chinese production hubs. Late last week, investors regained confidence, hopeful of Apple securing exemptions.