AAPL to report earnings today

Todays the day my fellow Veeky Forumsraelis
AAPL is going to report earnings after market close. Going to buy some option spreads right before market close. The consesnus analysts rate apple as a buy to strong buy but i dont think their earnings report is going to be above what is forecasted and if it is i think big money might sell off a lot of shares so the stock will still go down. Their iphone sales have bee dropping but some speculate the iWatch sales might make up for it supposedly theyve sold 12 million so far. I guess we'll see what happens after hours today.

money.cnn.com/2016/04/25/technology/apple-earnings/

wsj.com/articles/apple-watch-with-sizable-sales-cant-shake-its-critics-1461524901

I think traders have been overly pessimistic in selling off AAPL, and that if earnings are in line with expectations, the stock will go up, and if it reports even slightly better than expected the stock will go up a fair bit.

last year when apple reported Q3 earnings which was estimated 1.811 and was actually 1.85 some insiders sold off a bunch of shares which dropped the stock. Im not saying its going down to like $90 but a big sell off would be a drop of about $3 maybe $4. Im buying a spread so ill be able to profit whether it jumps or drops. Their iphone sales have gotten weaker which is why they introduced the iPhone SE. I think the iphone sales have dropped because almost everyone who wants an iphone already has one and most dont update every year. Their watch sales look strong though.

on an unrelated note i think it is stupid of them to enter the auto industry. Theyre doing so well in their market why try to put your hand in everything? Its going to cost them a fortune which they have but still i dont think its worth it with all the things that come along with being a car company

Apple is all downhill from here friends. iWatch is shite and we all know it. iPhone XXX is starting to become a bit too much, even normies are waking up to that fact.

Good buy again down in the mid 90s, hope it shits the bed today desu so I can buy back in

sweet, buy time

wew lads

Buying in hard

I've had a BUY order in at $90 for 3 months

It's not the only bad quarter coming up for AAPL that's for sure

$90 is a bit too low. if it drops below $92.5ish it'll probably keep running down for a bit. Put it in at $92.5-93 or find the next level of resistance

>AAPL is going to report earnings after market close

o-okay. nice to know kek. some positions open there... well it's a coinflip anyways lel

My put came in handy I guess (;
I only bought one 106 call and one 105 put
Looking like I'll make about $600 profit we'll see when the market opens

Should've bought two but I only wanted to use half of the 800 oh well

>long options ever
>not collecting volatility premium bull or bear play all day long
y u do this

I almost pulled the trigger on some 102 puts but I bitched out

I used to do this and learned the hard way. Last Q3 earnings I bought some NFLX calls with $500 sold them before earnings and had about 1500 then bought some more. Sold them for 2400 morning after earnings. Was going to buy some more calls but I pussied out. Would've ended up with around 15000. Then I would've used that to buy some Google calls and this was when Google jumped $100 after their Q3 earnings. Ended up using the 2400 to buy some apple calls. Earnings report went great but big money cashed in after hours and the stock dropped a few dollars and my options were worthless. Now I buy spreads so I can at least break even if something like that happens again

Can't win the lotto if you don't buy a ticket lol also refer to ^^^^ when I pussied out on doubling down for NFLX and then using it to buy some Google calls. If I doubled down and made that 15000 and then used that to buy Google calls I would've had around 80-90k

I've never bought options before, but I'm interested in learning more about them.

If a stock is trading at $100, and I expect that an event 2 weeks from now will cause the price to tumble to $90, at what price point should I buy a put? 105, 100, 95?

And what time frame? Should the put expire the day after the event, a month after the event, or several months after the event?

Assuming we're talking about american style options.

And then, assuming everything goes to plan, do you just sell the put option back on the market, or do you have to exercise the put and go through a whole bunch of transactions?

I know this is basic shit, but I hope someone can help me out.

Can anyone help me?

tastytrade.com

People said the same thing about Apple entering the phone industry.

That worked out well.

Investopedia has a lot of good info. Regarding your question if I somehow knew when it would happen personally I would buy the option the same week since it'll be cheaper the closer to expiration you buy. If you bought a put at 90 that would net you the most profit then 95 then 100 etc
Yes you can sell the option contract without exercising which is what I do

Phones and cars are completely different. theyre going to have to convince people they need an apple car like they did with the iPhone. People are more willing to buy a phone than a car let alone a car that will most likely be over 40k. Then they have to deal with dealerships unless they do what tesla is doing.

Hang on, even if it dipped to 90, wouldn't a put option at 90 be worthless? Or am I just not getting this?

At expiration it would be worthless. Before then it has a time value premium. At-the-money premiums are higher than way out of the money premiums, so you would get a higher return on your money, e.g. yesterday the premium was 5 cents, today it is 35 cents, you just made 700%.

Apple is the trendiest tech product right now since Microsoft.

They have strong brand recognition among millennials. They own such a huge market share on phones already. It's hard to expand, especially with China against apple.

Now they want to expand their profits even more and what has big profit margins with extra accessories that can be pushed onto customers? Cars.

They've already expanded to tablets, phones, notebooks/laptops, computers, tvs and watches. I think it makes sense for them to go with cars (although i don't completely agree and am iffy) but I think they could've gone gaming consoles instead, I guess video games are kind of dying out though.

Ended up selling and making %100 profit off the $400 I put in. The call became worthless but the put quadrupled.

The apple car is just speculation at this point

There have been no prototypes or concepts shown

At least Tesla actually sells cars

Nice strangle spread

Well, its close enough to be a straddle desu

Where do you get this volume profile?

Bullshit, expired order.

If you're going to play earnings with a straddle or strangle, how far out do you generally go with the expiration to avoid IV crush?