From “Options Action: Big Tech earnings tomorrow” which aired on CNBC Pro after the markets closed:
Optimize Advisors’ Mike Khouw digs into Big Tech ahead of tomorrow’s earnings.
Khouw’s power points:
- Apple represented more than 4% of all the options traded (not that unusual)
- There were 2.7 times more calls than puts
- That implies, he says, that the stock could move +/- 4%
- With Apple’s $2.48 trillion cap that works out to a swing of $100 billion either way
- The most active options were the $155 calls at $109
- Buyers of those calls, Khouw says, are making a bullish bet that AAPL could rally through that $155 strike price by more than the dollar and change they paid.
Cue the video:
My take: A bullish session all around, with positive comments from Tim Seymour, Dan Nathan, Karen Finerman and Guy Adami.