Apple earnings are on 5/4/23 at 4:30pm. Apple (AAPL) Q2 March 2023 consensus earnings estimate is 1.44 per share on revenue of 92.94 billion. The same quarter a year ago AAPL made 1.54 per share on revenue of 97.28 billion.
Q2 March 2023 Consensus: PE = 28.8 EPS = 1.44 Revenue = 92.94 B
Apple (AAPL) reported Q1 December 2022 earnings of 1.88 per share on revenue of 117.2 billion. The consensus earnings estimate was 1.93 per share on revenue of 122.1 billion. Revenue fell 5.5% compared to the same quarter a year ago.
Q1 December 2022 Results: PE = 25.8 EPS = 1.88 Revenue = 117.2 B Cash = 30.22 B Debt = 99.63 B Assets = 128.78 B Liabilities = 137.29
I'm posting this as a short with a 10% share hedge idea going into earnings. By using a collar strategy to hold 90% of shares and 10% of shares hedged. A collar is often used for downside insurance. Implied volatility often results in IV crush after earnings if the share price does not exceed the options premium. For example: with 1000 shares held, 1 options contract equals 10% or 100 shares.
With a wide range collar strategy sell 7/21 expiry 150 call simultaneously buy 7/21 expiry 190 put. The upside / downside, risk : reward = 10% : 20% for this options wide range collar strategy. So essentially, by using the collateral value of 10% shares, it equals 20% downside risk insurance for all 1000 shares for 3 months. If AAPL share price exceeds 170 after earnings, it only takes a +11% upside move to 189 / share of 900 shares to have the same share value as 1000 shares had at 170 / share.
*options use 100x leverage you could lose everything*
There are many types of options trading strategies and positions, simple to sophisticated & hybrids. I group them into theta, delta or mix strategies and bull, bear or neutral positions. There's a buy side and sell side to every trade. If you check the open interest (OI), you can see how liquid it is. Check how wide the bid vs ask spread is.
Theta: iron condor iron fly covered call cash secured put calendar spread collar
Delta: call put straddle strangle debit spread credit spread
Bull: call put credit spread call debit spread cash secured put
Bear: put call credit spread put debit spread covered call
Neutral: straddle strangle iron condor iron fly collar (often used for downside insurance) calendar spread (short or long time)
Options important variables: Strike = share price itm, atm, otm = strike position Expiry = Date of expiration Value = H, L & Mark Liquidity = bid vs ask spread Direction = put or call OI = open interest V = volume IV = implied volatility Delta = price Theta = time Vega = volatility Gamma = momentum
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AAPL options data:
5/5 expiry Put Volume Total 44,024 Call Volume Total 96,946 Put/Call Volume Ratio 0.45 Put Open Interest Total 139,519 Call Open Interest Total 173,449 Put/Call Open Interest Ratio 0.80 Highest Volume call strike 175 / 24,940 Highest Volume put strike 167.5 / 12,183
5/19 expiry Put Volume Total 32,222 Call Volume Total 25,727 Put/Call Volume Ratio 1.25 Put Open Interest Total 524,043 Call Open Interest Total 373,525 Put/Call Open Interest Ratio 1.40
6/16 expiry Put Volume Total 11,498 Call Volume Total 8,760 Put/Call Volume Ratio 1.31 Put Open Interest Total 815,092 Call Open Interest Total 640,445 Put/Call Open Interest Ratio 1.27
7/21 expiry Put Volume Total 2,462 Call Volume Total 4,440 Put/Call Volume Ratio 0.55 Put Open Interest Total 215,553 Call Open Interest Total 195,729 Put/Call Open Interest Ratio 1.10
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AAPL technicals: 1 day chart (16hr ext) with pi RSI, Triangular Trend Channel ATR, Fibonacci MAI & VolumeFlow indicators.
AAPL technicals update before earnings today 5/4 at 4:30pm: 1 day chart (16hr ext), 2 year view, with pi RSI, Triangular Trend Channel ATR, Fibonacci MAI & VolumeFlow indicators.
AAPL options data update before earnings today 5/4 at 4:30pm:
5/5 expiry Put Volume Total 93,855 Call Volume Total 94,566 Put/Call Volume Ratio 0.99 Put Open Interest Total 184,730 Call Open Interest Total 238,357 Put/Call Open Interest Ratio 0.78 Highest Volume call strike 170 / 20,015 Highest Volume put strike 157.5 / 16,189
5/19 expiry Put Volume Total 25,335 Call Volume Total 35,982 Put/Call Volume Ratio 0.70 Put Open Interest Total 546,982 Call Open Interest Total 458,832 Put/Call Open Interest Ratio 1.19
6/16 expiry Put Volume Total 16,210 Call Volume Total 10,110 Put/Call Volume Ratio 1.60 Put Open Interest Total 839,251 Call Open Interest Total 642,468 Put/Call Open Interest Ratio 1.31
7/21 expiry Put Volume Total 9,128 Call Volume Total 6,490 Put/Call Volume Ratio 1.41 Put Open Interest Total 228,217 Call Open Interest Total 214,522 Put/Call Open Interest Ratio 1.06
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CUPERTINO, Calif.--(BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2023 second quarter ended April 1, 2023. The Company posted quarterly revenue of $94.8 billion, down 3 percent year over year, and quarterly earnings per diluted share of $1.52, unchanged year over year.
Q2 March 2023 = Consensus: EPS = 1.44 Revenue = 92.94 B Results: EPS = 1.52 Revenue = 94.8 B
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AAPL options data update post earnings today 5/5 at 3:30pm:
5/19 expiry Put Volume Total 142,492 Call Volume Total 104,733 Put/Call Volume Ratio 1.36 Put Open Interest Total 570,677 Call Open Interest Total 466,846 Put/Call Open Interest Ratio 1.22 Highest Volume call strike 175 / 22,883 Highest Volume put strike 155 / 34,893
6/16 expiry Put Volume Total 98,945 Call Volume Total 75,348 Put/Call Volume Ratio 1.31 Put Open Interest Total 848,438 Call Open Interest Total 651,699 Put/Call Open Interest Ratio 1.30
7/21 expiry Put Volume Total 42,883 Call Volume Total 36,324 Put/Call Volume Ratio 1.18 Put Open Interest Total 231,315 Call Open Interest Total 217,746 Put/Call Open Interest Ratio 1.06
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6/1/23 AAPL update: Will AAPL get to 182.86 to become the world's only 3 trillion dollar market cap company? Or is 180 a fantastic short entry? I'd say both are true, but it all depends on the timing.