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Apollo Global Management's Options: A Look at What the Big Money is Thinking

April 25, 2022

Apollo Global Management, a private equity firm with over $50 billion in assets under management, has been making waves in the options market recently. As one of the largest alternative asset managers in the world, Apollo's options activity is worth paying attention to. In this article, we'll take a closer look at what Apollo's options bets are telling us about the market and the big money's thinking.

Apollo's Options Activity

According to recent filings with the Securities and Exchange Commission (SEC), Apollo Global Management has been buying up options contracts in a number of high-profile stocks. The firm has been particularly active in the technology sector, with large positions in companies like Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN).

Apollo's options activity is not limited to just buying calls and puts, however. The firm has also been selling options contracts, a strategy known as "iron condors" or "credit spreads." This type of trade involves selling options contracts with a higher strike price than the ones being bought, while simultaneously buying options contracts with a lower strike price. The goal of this strategy is to profit from the time decay of options contracts, rather than from the direction of the underlying stock.

What Does Apollo's Options Activity Mean?

So, what does Apollo's options activity mean for the market? Well, for starters, it's a sign that the firm is bullish on the technology sector. By buying options contracts in companies like Microsoft, Alphabet, and Amazon, Apollo is essentially betting that these stocks will continue to rise in value.

Apollo's iron condor strategy, on the other hand, suggests that the firm is not necessarily looking to make a big bet on the direction of the market. Instead, it's looking to profit from the time decay of options contracts, which can be a low-risk way to generate returns.

Overall, Apollo's options activity is a sign that the firm is confident in the long-term prospects of the technology sector, and is willing to put its money where its mouth is. Whether or not this is a sign of a broader market trend, however, remains to be seen.

Conclusion

Apollo Global Management's options activity is a fascinating look at what the big money is thinking. By buying options contracts in high-profile stocks and selling options contracts with a higher strike price, Apollo is essentially betting on the continued rise of the technology sector. Whether or not this is a sign of a broader market trend, however, remains to be seen. One thing is certain, however: Apollo's options activity is worth paying attention to, as it can provide valuable insights into the firm's investment strategy and the broader market.