Apple Inc. (NASDAQ:AAPL) bulls are confident about the stock seeing a huge rise of about 36%, and therefore, they are taking to the options market to place long-term bets. In recent days, increased interest has been seen in Apple’s 130-strike call option expiring in January, reports CNBC.

Traders Betting Big On Apple Inc. (AAPL) Stock To Rise 36%

Apple (AAPL) could rally 36% by 2018

In the past few sessions, about 10,000 of such contracts have been purchased, representing positions on some $100 million worth of Apple Inc. (NASDAQ:AAPL) shares. Though it is not possible to determine the full extent of the position a given investor has on a stock, if Apple Inc. (NASDAQ:AAPL) shares rise above roughly $133 — representing a 36% rally — by early 2018, the buyers of these options are bound to see profits.

Speaking on CNBC’s Trading Nation, Dennis Davitt of Harvest Volatility Management said, “Up 40 percent in 18 months sounds shocking — until you realize that Apple was trading at that level a year ago. So it’s definitely within striking distance to get to that point… What you’re seeing right now is people who are underweight and unsure buying calls to get exposure.”

The expert explained that the calls are trading at roughly $3, and for this reason, they have potentially become a much more efficient way to gain exposure to the stock.

Surprise announcement could push stock up sharply

Max Wolff of Manhattan Venture Partners said call options are for investors who wish to keep some of their “powder dry” but still have some exposure to the possibility that the company will be able to rally back to where it used to be. Though Wolff does not expect the stock to “rocket ship” back to $130, if there is a surprise announcement like increased dividends or a buyback, it would take just one day to get options investors at least half the way back there.

In a recent research note, Argus Research shed light on Apple’s transformation from a hardware enterprise to a business with a focus on software and services. The sell-side firm reiterated its Buy rating on the stock with a price objective of $135.

On Wednesday, Apple Inc. (NASDAQ:AAPL) shares closed down 0.33% at $97.14. Year to date, the stock is down by over 9%, while in the last year, it is down almost 24%. The stock has a 52-week high of $132.97 and a 52-week low of $89.47.