“A later-than-expected earnings report date for Apple Inc. has some options traders nursing losses Wednesday,” Kaitlyn Kiernan reports for The Wall Street Journal.
“Apple said Tuesday that it would report its fiscal first-quarter results after the close of trading on Jan. 27, four days later than some brokerage and stock-data sources had predicted,” Kiernan reports. “While that difference is relatively small, it spans two different stock-option expiration dates.”
“As a result, the prices of some Apple contracts were collapsing Wednesday as the ‘earnings premium’ — extra cost priced into the options to account for the heightened risk of price swings — was factored out,” Kiernan reports. “On Wednesday, Apple’s implied volatility, a measure of investor expectations for future stock swings and a key component of an option’s price, was trading broadly lower.”
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