On Tuesday, Apple Inc. (NASDAQ:AAPL) will report its quarterly results after the bell. Times have been tough on the company’s stock price as it has fallen from last September’s all-time high of $700 down to its $392.05 close on Friday.?
Year-to-date, the stock is down 26.62% and one portfolio manager recently predicted the stock could go even lower should the company not?announce a dividend increase next week.?
Analysts have forecast revenue growth to?$42.49 billion (8 percent) with earnings per share have been estimated to fall 18 percent in the quarterly report, reported CNBC.?
In Friday’s options market, traders were jittery about the upcoming report and according to Minyanville, an AAPL chart for?30-day implied volatility was close to two-year highs.?
Chart by LiveVol -?Two-year chart of AAPL 30 day IV
In the past prior to earnings, Apple has rallied but this time, it reached a new high. The one time implied volatility was higher, it came in 2011 during the fall when the VIX rose to 48, wrote Minyanville.?
Realized volume has also increased but Apple’s 30-day realized volume was hovering near 30, which represents a midpoint in two years volume.
Options traders are therefore estimating a larger move than seen in the past.?