Option Block 427: Rocking AAPL Earnings

Trading Block: AAPL earnings after the bell.

AAPL Stats:

·  ATM weekly straddle: $7.20 - approx 5.4%.

·  ADV: 988K contracts.

·  Today: 1.7M contracts.

·  Call/put ratio: 2.1/1.

·  Net deltas: short 670k.

·  Calls sold on bid roughly equal to calls bought on ask - puts also evenly divided.

·  AAPL volatility bets surge in options market as buyback beckons.

Investors seek protection against healthcare stock decline - Healthcare companies on a seven-year tear have been top performers so far in 2015. Love ’em or Hate ’em, China Stocks Are Red Hot in Options Market - Bearish options bets on the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF.

Odd Block: Calls go up in iShares MSCI Taiwan Index (EWT), call blocks trading in Joy Global Inc. (JOY), and OTM puts trade in Direct TV (DTV)

Strategy Block: Tosaw discusses hedging AAPL and other earnings strategies.

Mail Block: Listener questions and comments

• Question from Cab 65 - What account size do you recommend to sell wide iron condors?

Rock Block: In which the all-stars discuss movies in the Michael Bay oeuvre. Let us know your thoughts on Facebook, Twitter, or by email

Which Nicholas Cage movie is the best?

1. The Rock
2. Con Air
3. Face Off

Who does the best “Welcome to the rock” interpretation?

1. Uncle Mike
2.  The greasy meatball
3. Mark “the voice of options” Longo

Around the Block: Earnings: AAPL & other earnings expected to dominate the week of April 27.