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Option Block 592: The Apple of Yesteryear

The Option Block
The Option Block
Episode • Feb 3, 2017 • 1h 5m

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

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