“Apple (AAPL) is a company that tends to surprise Wall Street every time it reports its quarterly earnings, usually on the upside, occasionally on the down,” Philip Elmer-DeWitt reports for Fortune. “As a result, the stock often makes big moves the next day — sometimes as much as 5% and 6%.”
P.E.D. reports, “Given the power of stock options to leverage your investment dollars, you might be tempted to bet on the earnings report coming out next week by buying Apple calls (if you think the stock is going up) or Apple puts (if you want to bet that it will go down)… [But] as Kim Klaiman demonstrates in one of the most sensible Seeking Alpha articles I’ve read some time, buying either puts or calls just before Apple’s earnings report is, on average, a losing proposition.”
Read more in the full article here.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]