Apple options show earnings surprises unlikely later today

“With Apple Inc. trading more than 30 percent below last October’s record high heading into its earnings report, options investors appear to be unenthused about the pending results, especially after the iPhone maker already warned they’ll fall short of previous estimates,” Gregory Calderone reports for Bloomberg.

“Options prices imply a 5.4 percent change in the share price following the company’s first-quarter report, due to be released after the close of trading Tuesday,” Calderone reports. “That’s slightly higher than the average move of 4.4 percent following the last eight releases. Among contracts expiring this week, 57 percent fall between strike prices of $145 to $165, with calls slightly outweighing puts.”

“Only about 6 percent of Apple’s total open interest is set to expire on Feb. 1, compared with 8 percent of the total contracts that coincided with the fourth-quarter report in November,” Calderone reports. “The relatively low open interest suggests options traders are staying on the sidelines into the release.”

Read more in the full article here.

MacDailyNews Take: The fewer surprises Apple has in regard to earnings and guidance, the better.


    1. Options and actual stock ownership are apples and oranges (no pun intended), you can’t rely solely on one particular index.

      This stock, IMO, is poisonous. Just look at the very foundation of AAPL’s premise to investors:

      We are confident in our current leadership

      Even though the iPhone market is starting to trend down like the PC market started to do 10-years ago, we are confident going forward

      We have confidence in Apple’s innovation

      We have confidence in Tim Cook’s pricing model

      We have confidence in Eddy Cue and Johnny Ive

      The only thing missing is “AAPL is unsinkable”.

      This stock is a major disaster waiting to happen in the short term… forget about long term. You’ll be cleaned out by then.

  1. Even though this article is about options, I am investor not an option player. First AAPL purchase was when it was@100. I am not going to be cleaned out as I don’t own anything to anyone. In a long term even the sun will extinguish so nothing is forever.

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