A real tweet is coming up after bell: Twitter reports earnings. A busy evening is ahead. I’m Angela Miles covering weekly options expiring this Friday and next Friday.
Twitter’s earnings are highly anticipated. Just after the bell this morning 30,000 contracts hit the tape. Twitter is trading up $1.20 to $42 going into earnings. There appears to be shift in trading tone as call buyers move into the market following brisk put buying this week. Those calls are active at the 42 strike up to the 50 call strike. Puts are active at the 34 and 36 strikes. The straddle at the 42 strike predicts an 11.5% move up or down off of earnings news. Click on my In The Money Show to hear from a trader who is taking a contrarian view on TWTR.
Also from the social media sector, LinkedIn turns in results after the close. LinkedIn is trading $233 with stand out put activity at 220 and 250 on he call side. Downside put paper is especially getting play. The 235 straddle suggests a 9% move.
Gopro presents a snap shot of earnings as well tonight. Ahead of earnings, calls are in focus with traders in the 51, 52, 55 and 60 strikes. Implied volatility is spiking so it’s easier to measure the move with a straddle, which implies a 10.5% move.
Will Pandora bring music to the ears of investors tonight? The stock is trading $18.60 with a few calls in action at the 20 strike and larger action on the put side at the 15 and 16 strikes. The straddle for Pandora prices in at 11%.
Next Wednesday Cisco turns in earnings. Most of the action is in-the-money around the 26 strike along with traditional calls at the 30 strike. The options market predicts a 5% move.
Fireye has earnings next week and the stock is on fire. Going into Friday’s expiration calls at the 37 strike as the stock trades $36 on the heels of an massive security breach at Anthem insurance company.
Apple is always active in the Weekly’s and more than 123,000 contracts jumped onto the tape in the early going. The options market has been indicating the stock would get to $120, and here we are with AAPL trading $120. Calls are in motion at the 120 and 121 strikes. There are also some puts active at the 110 that expire at the end of the month.
Jobs numbers come out tomorrow and hedgers are interested in in owning put protection at the 1,990 and 2,010 strikes in the SPX. The 2,050 strike calls are active.
One name has been added to the list of available Weeklys: Community Health Systems.
That’s it for now. I’m Angela Miles. @AngieMiles. Thank you for watching!