“The options market is bracing for a big move in Apple shares after it posts earnings on Wednesday amid what has been a dramatic plunge for the world’s most valuable publicly traded company,” Angela Moon and Doris Frankel report for Reuters.
“Based on options activity just hours before the announcement, due after the market close, traders were estimating about a 7 percent one-day move after the earnings, which would be a much more volatile outcome than normal for Apple,” Moon and Frankel report. “Such a move could push the shares as low as $465 or as high as $535, depending on how earnings come out.”
Moon and Frankel report, “‘Three ingredients make this earnings for Apple especially appetizing for options traders: (CEO) Tim Cook has missed earnings estimates 60 percent of the time over the past five quarters, the stock has crashed almost 30 percent since September, and no stock has as many hedge funds owning it,’ said Gareth Feighery, a founder of options education firm Markettamer.com in Philadelphia. ‘Combine those three factors together and Apple is a fireworks display ready to ignite, which makes it no surprise to see its options building in a move of close to 7 percent post-earnings.'”
Read more in the full article here.
My prediction…record quarterly numbers once again and AAPL at least touches $540 later today during after hours trading. Get your popcorn ready either way.
I think after hour will pop in 10%
It looks like the market is anticipating a move to the upside with the price up $9.25 today.
In any case, this is probably one of the more exciting moments for years for everyone with a direct or indirect stake in AAPL’s share price. I am very long the stock, and yesterday evening just before close, I set up a bullish call butterfly on the weeklies, which now (30 min before today’s market close), is up already by 55%. Tempting to sell and take the profits, but then a lot of tonights excitement is off. A blow-out performance at 22.30, and will go for more festive stuff than popcorn….
Of coz AAPL will move big as it is so much compressed !!!
Tim Cook has beat Apple’s guidance every quarter, with record profits. I’ll take that from a CEO every time.
That’s the part that makes me crazy.
Apple has only “missed” in the sense that analysts’ estimates were blown away so often by Apple, the analysts started to make up crazy high numbers. Then surprise — the analysts were too high (numerically & chemically).
If the analysts are always wrong, why is the street still paying attention to them?
All excellent points.
You gave me an idea — FUD B.C. and FUD A.D. — 2012 or 2013?
“Then surprise — the analysts were too high (numerically & chemically).” Yup, they are wrong and Apple is punished for it. Surreal unreal.
Onward and upward for Apple who will fire on all cylinders in 2013 and we will see more collateral Android damage as a result. Just my guess.
I’m having a nice spinach salad. And waiting……………..
“as low as $465 or as high as $535”
Shouldn’t the range be $475 to $550?
Or $0 to $1000.
It’s all the same for another 20 minutes.
Damn! My NFLX looks good. No great! Hope you all had some NFLX along with your AAPL! Diversify.
I guess it was manipulated?
Holy fsck! Down $50 in after hours trading!