Stock option traders signal more muted Apple earnings reaction than usual

Shares of Apple 2.5%, ahead of the company’s fiscal fourth-quarter report due out after market close, as options traders have prepared for a more muted than usual stock reaction to Cupertino’s Q421 report.

stock chart

Tomi Kilgore for MarketWatch:

An options strategy know[n] as a straddle, a pure volatility play that involves the simultaneous buying of bullish and bearish options with at-the-month strikes expiring Friday, is implying a one-day, post-earnings stock price move of $4.16 in either direction, according to data provided by Option Research & Technology Services (ORATS).

That expected move is 28.5% less than the average one-day post-earnings move over the past 12 quarters of $5.82 in either direction, according to ORATS Principal Matt Amberson.

MacDailyNews Take: We’ll know in just about half an hour.

We will have the results for you as soon as they are released, right around 1:30 p.m. PDT / 4:30 p.m. EDT. We will also as usual cover Apple’s conference call which follows at 2:00 p.m. PT / 5:00 p.m. ET with live notes. Look for both links on our home page starting at 1:30 p.m. PDT / 4:30 p.m. EDT on Thursday.

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