Apple is scheduled to report fiscal Q2 earnings on Tuesday after the close, with analysts expecting both earnings and revenue down from a year earlier despite the stock’s strong performance so far in 2019.
When AAPL releases results, it is expected to report adjusted EPS of $2.36, down from $2.73 in the prior-year quarter, on revenue of $57.44 billion, according to third-party consensus analyst estimates. That revenue would represent a 6.1% drop from a year ago.
Options traders have priced in a 4% stock move in either direction around the upcoming earnings release, according to the Market Maker Move indicator on the thinkorswim® platform. Implied volatility was at the 42nd percentile as of this morning.
Looking at the May 3 weekly expiration, call volume was heavy at 210 and 215, with put volume heavy at 195. Looking farther out at the monthly expiration, call volume was heavy between 205 and 210, with put volume high at 185.
Note: Call options represent the right, but not the obligation, to buy the underlying security at a predetermined price over a set period of time. Put options represent the right, but not the obligation to sell the underlying security at a predetermined price over a set period of time.
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