Waxing nostalgic about the Apple of yesteryear
Download Option Block 592: The Apple of Yesteryear
Trading Block: Earnings edition
- AAPL: Closed: $121.35, ATM Straddle: $4.25 approx. 3.5%. Opened: $127.09 – up 4.7%, traded as high as $130.49 – up 7.5%. iPhone 7 sales blew away estimates. Apple still sitting on over a quarter of a trillion in cash – excluding debt.
- FB: Closed: $133.23, ATM Straddle: $6.70 approx. 5%. traded as high as $135.29 – up 1.5%, today down to $130.70, approx. 2%
After the bell: Amazon, Chipotle, Visa, GoPro
- AMZN: $839.75, ATM Straddle: $41.50 – approx. 5%
- CMG: $424.1, ATM Straddle: $20.55 – approx. 5%
- GOPRO: $10.88, ATM Straddle: $1.25 – approx. 11.5%
Odd Block: Calls trade in Alcoa Inc (AA), calls trade in MetLife Inc (MET) and calls trade in Nordstrom, Inc (JWN).
Strategy Block: Uncle Mike Tosaw discusses hedging Apple going into earnings
Mail Block: Options #QuestionOfTheWeek
Time for another Earnings #StraddleBattle : Which stock will outperform its straddle by the largest margin?
- Apple (AAPL)
- Facebook (FB)
- Amazon (AMZN)
- Chipotle (CMG)
Listener Questions and Comments
- Question from Geoff – Are straddles really better than analysts estimates for predicting stocks?
- Question from Bob – Concerning earnings – I have been told to take an ATM call and a put and add them together and that is the expected move. Is that correct?
Around the Block: Numbers on the horizon
- Feb 3: Unemployment
- Feb 3: Factory Orders