Playing Apple Earnings

Google, Microsoft, Tesla and Facebook all crushed their earnings yesterday and today, sending NASDAQ up nearly 5% for the day. Apple also ran along side the other mega cap gang members today ending the regular trading day above 3.3% and another 1.38% after hour trading session.

Above chart is the daily candle chart for Apple, MACD is looking to spill over, RSI ended the day at 58 leaving room for movement both up and down. Stoch is in the overbought zone, however we have already seen that the stock can stay in the overbought stoch zone for days and keep running. The volume looks to be increased for the day, strong day for many mega cap tech stocks today with decent volume.

Hourly Apple chart,

Hourly chart looking like it can continue to push on as the earnings are coming out tomorrow after the market. Google beating earnings ramped NASDAQ up for a gap up open and Apple left a gap with a strong momentum all day and a big bearish hourly flag at the end of the day with big volume spike. However its not something to worry about as the after hour trading looks strong with Microsoft, Tesla and Facebook Beating the market.

Analyst Prediction

Apple had beaten analysts expectations 8 consecutive quarters in a row for both revenues and EPS. As you can seethe forecast for both EPS and Revenue are considerably lower than the last quarter. Apple had already released lower guidance due to COVID-19 last quarter, the stock sunk a few dollars taking the whole stock market down. I believe there is a good chance of beating the expectations.

Straddle Play For Apple Earnings

The markets heated, NASDAQ is less than 10% away from its all time high. Straddle likely to be the best option at this point to play Apple earnings for tomorrow.

A straddle is a pretty neutral position, but a good way to collect premium playing options for both calls and puts of the underlying security with the same strike price as well as the expiration date.

Because we expect high volatility one way or another we can expect to collect premium either way, whether it goes up or down. One downside is if the stock is flat then depreciation in implied volatility will decrease values for both options.

All posts made on this website are provided for information purposes only. None of the information here is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, Company, or fund. Before making an investment decision, you should seek the advice of a qualified and registered securities professional. I do not have a position in the stocks mentioned nor do I plan on opening a position in the next 72 hours.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s