AAPL “Anomaly”

Hey options traders!

Next week is THE earnings week.  

Companies reporting:  MSFT on the after market close on the 27th…

…then AAPL,  AMZN,  FB,  GOOGL/GOOG  ALL REPORT at market close on the 29th.

That represents about 15% of the S&P 500 all in one day,  and close to 35% of the QQQ.

Looking at the earnings,  option traders are positioned for a one way trade…

The stock market going higher.

Take a look at the Option Skew Curve in AAPL for options expiring next week:

The chart above is the IV (implied volatility) of all options over .25 cents expiring next week,  so no BS cheepy options are out there.

As you can see,  call options are bid over .25 all the way out to the 135 strike.  

In addition,  options IV’s are equal or higher on the upside than they are on downside.

This is a created by two things:

AAPL’s relative ‘meh’ last few months especially since the iPhone 12 launch.

But more importantly,  one way trading by Robinhood/Dough/Gatsby  etc.  

Retail phone traders love upside calls and they love AAPL. 

This pushes the IV’s higher.

Thus,  call spreads appear to be FAR more favorable for bulls than straight calls heading into next week.

Your Only Option,

Mark Sebastian


P.S. – This is EXACTLY why I launched my newest service “Little John”. We find these “weird” trade anomalies…and you can have them too! First trade. Frist winner yesterday. 25%; Let’s go!

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