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This options strategy can profit off an Apple earnings surprise, Goldman says

Pelican Press · 2024-07-25T14:06:38+0000

This is the hidden content, please Sign In or Sign Up This options strategy can profit off an Apple earnings surprise, Goldman says The upcoming earnings report for Apple could create a big market move that options traders can take advantage of, according to Goldman Sachs. John Marshall, head of derivatives research at Goldman, said in a note to clients that the tech giant’s earnings report after the bell on Aug. 1 could deliver a positive surprise. “[Goldman] Hardware analyst Michael Ng expects Apple (AAPL) to deliver an EPS beat at upcoming quarterly earnings driven by solid growth expectations for iPad/Mac and Services. He believes investor focus will be centered around iPhone demand, AI investment and valuations,” the research note, published on Wednesday, said. Additionally, the market seems to be expecting a lot of movement for the stock around the quarterly report. “AAPL two-week implied volatility of 31 is in its 93rd percentile relative to the past year, and we see potential for an uptick in volatility approaching earnings. Options investors are bullishly positioned,” the note said. The firm highlighted $225 strike price straddles expiring Aug. 9 as way to bet on earnings-related volatility. A straddle is a type of options strategy involving a call and put option on a stock with the same expiration date and strike price. A call option serves as a bet that the stock will rise above the strike price, while a put option works when a stock falls. The idea of combining the two in a straddle is to bet on volatility increasing, regardless of whether the stock rises or falls. The Goldman note was written before Wednesday’s tech sell-off, in which Apple fell 2.9%, so investors may want to consider other strike prices as well. The losses from a straddle trade are capped at the up front cost of the options contract. A straddle is more expensive than a one-way put or call option with the same parameters. Shares of Apple are up 13.5% year to date, roughly in line with the S & P 500 . The stock rose sharply in June after Apple unveiled new artificial intelligence features at its developer conference. AAPL YTD mountain Shares of Apple are up more than 13% year to date. — CNBC’s Michael Bloom contributed reporting. This is the hidden content, please Sign In or Sign Up #options #strategy #profit #Apple #earnings #surprise #Goldman This is the hidden content, please Sign In or Sign Up This is the hidden content, please Sign In or Sign Up

By Pelican Press,
July 25, 2024 in World News

https://hopzone.eu/forums/topic/76525-this-options-strategy-can-profit-off-an-apple-earnings-surprise-goldman-says/

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Posted July 25, 2024

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