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Apple, Fastenal Stocks Flourish During Market Rally

FAST options trader were seemingly on the wrong side of today's price action

Oct 11, 2019 at 1:44 PM
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The Dow is pacing for its best day in months, and two stocks having big days are Apple Inc. (NASDAQ:AAPL) and Fastenal Company (NASDAQ:FAST). Let's check in on the shares of AAPL and FAST during their strong session on the charts.

Apple Stock at All-Time High

AAPL shares have spiked 1.9% to trade at $234.55, and earlier hit a record high of $235.20. The stock has been riding a wave of positive analyst attention due to increased expectations around shipments for the new iPhone, and Wedbush just raised its price target to $265 from $245. The analyst note called attention to the tech company's streaming service, which it believes could attract 100 million users over the next four years.

Apple has now added more than 15% in the past three months, but AAPL options traders have been put-skewed. In today's trading, though, buying could be taking place at the weekly 10/11 235-strike call, which would suggest bulls are betting on the Dow component staying hot in the near term.

Fastenal Beats Despite Economic Headwinds

The shares of FAST are also surging to record highs, earlier trading up at $36.58 and last seen up 17.1% at $36.32. The industrial parts supplier beat on the top and bottom line, even though it noted an extended slowdown in economic activity during the quarter.

This move is burning many Fastenal bears, both in and out of the options pits. Not only has put buying tripled call buying in the past two weeks at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), but the vast majority of analysts still have just "hold" ratings in place. The chance for a big reversal in sentiment following this breakout could mean FAST stock could stay hot.

 

 
 

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