It’s been a wild week for earnings and it’s not over yet!
Let’s look at Weekly options set to expire this Friday, August 1st and next Friday August 8th.
Turning in earnings today three big names: LinkedIn, Gopro and Tesla.
I’m starting with LinkedIn in the wake of Twitter taking off on much better than expected earnings. LinkedIn options expiring Friday, as the stock trades $185, implied volatility is very high at 180. It appears trades are mostly calls spread strategies with calls robust in the 190 & 200 and 210 strikes and puts at 162 & 165 and then again at 177. Traders also like to play Weeklys and traditional options and there are 200 traditional calls active in LNKD. Volatility is high in LNKD. The 185 straddle suggests a 7.8 percent move as it prices in at $14.50.
GOPRO comes out with its first earnings report tonight since going public. It’s mostly calls that are active at the 44, 45 and 50 strikes and so far there is not much interest in the puts. The straddle is shifting around and is currently suggesting a 10 percent move up or down on earnings.
Tesla is likely to gain in trading volume throughout today’s session going into earnings tonight. TSLA is trading around $229. Calls in multiple strike are active up to 270 and puts down to 190. There are more calls than puts trading which could be a sign Tesla will beat on earnings or the shorts are looking for cover. tHE TSLA Straddle predicts a 9 percent move.
Friday morning Procter and Gamble (PG, $77.50) reports earnings and a mini move is projected by the options of about 1.6 percent. But, anything is possible this earnings season.
Next week in earnings…
On Thursday, Solarcity shines in the earnings spotlight . As that stock trades $73 the straddle suggests around a 10 percent move. But there’s not much options paper yet.
Catching up on more extremely active Weeklys today, Twitter has large volume, the stock is trading $45 following a big move off earnings.
Deep in the money calls are in action with traders either exiting 39, 40, and 42 call strikes or trading options like stock. In the money calls are in action around the 45 strike. Option prices suggest TWTR will remain between $43 & $46 dollars into Friday’s options expiration. In next week’s Weeklys paper 42 puts are popping up. There’s also 6,000 put contract trading at the 38 strike in the traditional expiration. .
Apple is active as usual. The stock is trading $96. Calls spreaders are moving into the 97, 98 and 99 calls. And, on the put side 96 and 97 strikes are active.
Facebook’s trading $73 today, At money call and puts are in play in the 73 and 74 lines.
Yum Brands is trading lower on weak sales from a meat problem in China. The stock is trading $69 with puts generating interest into Friday’s expiration at 68 and 68.5 puts and calls at 69 and 70. Next week put buyers emerge in YUM at the 67 strike.
Micron is suddenly busy in the Weeklys on comments from Goldman Sachs on lower chip prices. Traders are coming for 30 puts and 31 and 32 calls. Next week it’s the 32,33 and 34 calls they want. Interesting…
TBT is attracting options player as bonds edge higher. TBT is trading $60, calls are in demand at 60 and 61 on the call side for this week and 60 and 61 for next week. Implied vol is unusually high today at 44. Traditional 60 calls are also busy.
Last, but certainly not least the SPX going into the July Jobs Number Friday. There is heavy put volume centered around the 1,950 strike and lighter volume at 1,980 on the call side.
That’s it for now. Thank you for joining me today! Twitter @AngieMiles