Apple’s stock options point to unusual post-earnings volatility

“Options traders are gearing up for a much-bigger-than-usual move in Apple’s stock after the technology giant reveals its first-quarter results after Tuesday’s close,” Tomi Kilgore reports for MarketWatch.

“Based on an options strategy known as a straddle, which involves the simultaneous buying of bullish and bearish options that expire at the end of the week, and with strike prices at current levels, Apple’s stock is expected to move nearly 7% the day after results, according to data provided by FactSet,” Kilgore reports. “Meanwhile, over the past 20 fiscal quarters, the stock has moved an average of 4.2% — the median move is 2.7% — the day after results.”

Kilgore reports, “At current prices — it was down 1.7% at $111.13 in midday trade Tuesday — the strategy could pay off if the stock rises above $118.83 or falls below $103.43.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “BD” for the heads up.]


  1. I’m not sure I understand all that options mumbo-jumbo but it looks as though Apple is being set up for a nice, big share drop today. Very convenient of Wall Street to disguise an Apple share price drop based on a generally weak market. I didn’t expect a Netflix pop but today looks very discouraging for Apple pre-earnings. I guess it’s just unfortunate timing for Apple shareholders, is all.

  2. AAPL will rise if you PERSONALLY BUY the stock tomorrow and it will drop if you PERSONALLY SELL or DO NOTHING with AAPL tomorrow. It is your choice.

    Voting for political candidates works on the same principle. In this case, vote with your wallet and buy.

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