Mystery trader bets Apple could fall 8% on earnings

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Mystery trader bets Apple could fall 8% on earnings $AAPL (via OptionsAction)

With the iPhone maker gearing up to report its fiscal third-quarter earnings after Tuesday's closing bell, investors might be getting a little too comfortable ahead of the results, Michael Khouw, co-founder and chief strategist at Optimize Advisors, said Monday on CNBC's"Apple is a name that typically moves about 6% on average the week that they report," Khouw said, referencing data from the last eight quarters. "Right now, the options market is implying a move of about 4.

"The put-call ratio was about double its average, so puts out-traded calls, which is uncommon for Apple," Khouw said of the bearish bets placed in Monday's trading session. When that trade was placed Monday, the mystery buyer was betting that Apple could fall 8% from its then-current levels. At Tuesday's levels, the presumed drop was closer to 7%.

Brian Kelly, founder and CEO of BKCM, said in the same segment that Apple's stock looks "kind of sleepy" with tangible business drivers like the 5G boom still far out on the horizon.

 

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OptionsAction

OptionsAction Mistery trader 😂

OptionsAction This did not age well ... How about an update detailing the trader’s loss for guessing wrong.

OptionsAction Only to recover back in the next few days.

OptionsAction numerai is a perfect pick. Skin in the game.

OptionsAction Yolo

OptionsAction Am short $aapl

OptionsAction $AAPL Bullish

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