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