“Traders aren’t expecting big fireworks after Apple Inc. reports results Tuesday,” Saumya Vaishampayan reports for The Wall Street Journal.
“Even after huge unexpected moves from major technology stocks last week, options-market traders don’t expect an outsized move from Apple after the iPhone maker releases fiscal third-quarter earnings after the close of trading,” Vaishampayan reports. “Analysts are expecting earnings of $1.79 a share, up from $1.28 a share a year earlier, according to a survey by Thomson Reuters. Revenue is expected to rise to $49.31 billion from $37.43 billion a year ago.”
“Options traders are betting that Apple shares will move 4.9% in either direction through the end of the week, based on the price of an options strategy called a straddle, according to Trade Alert,” Vaishampayan reports. “If Apple moves 4.9% in the day after earnings, it would be slightly more than its average 4.5% swing after its last eight reports. Shares slipped 1.6% after second-quarter earnings in April, and rose 5.7% after first-quarter results in January. That’s at odds with expectations for moves in several tech companies, especially those in the Internet space, which have been rising in the wake of Google Inc.’s 16% surge on Friday after earnings.”
Read more in the full article here.
MacDailyNews Take: We’ll soon see.
What the market expects from Apple’s Q315 earnings report today – July 21, 2015