Asset manager Apollo Global Management (APO) has been on a tear, surging 33% higher over the past year. One trader expects shares to trend higher over the next 17 months.
That’s based on the January 2026 $185 calls. With 502 days until expiration, 90,774 contracts traded compared to a prior open interest of 260, for a massive 350-fold rise in volume on the trade. The buyer of the calls paid $1.93 to make the bullish bet.
Apollo shares last traded for just under $115, so the stock would need to rise by $70, or about 61%, for the options to move in-the-money. Apollo hit a 52-week high of $126 back in July and are still recovering from the recent market pullback.
Revenues have declined for the asset manager, but overall earnings are up 42% in the past year, boosted in part by rising asset values. At current prices, shares trade at just 12 times earnings.
Action to take: With shares trending higher, the stock likely has more upside in the months ahead. At current prices, Apollo pays a 1.6% dividend, and has a history of increasing its payout over time.
For traders, the January 2026 $185 calls have ample time to play the current uptrend. Today’s traders can likely see the options clear high double-digit returns on a further uptrend in shares, and could even take profits well before expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
