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US equity futures are trading higher this morning after solid earnings from Apple (NASDAQ:AAPL).
In front of the bell, future on the Dow Jones Industrial Average are up 0.26% and S & P 500 futures are higher by 0.24%. Nasdaq-100 futures contracts added 0.60%.
In the option pits, the activity followed the usual script, with calls far exceeding the calls. Specifically, about 18.1 million calls and 16 million people changed hands during the session.
Demand for CBOE sales increased, resulting in an increase in the call volume / call ratio in one session, which reached 0.65, a three-week high. Meanwhile, the 10-day moving average has risen to 0.60.
Option activities continue to focus on improving corporate performance. Apple (NASDAQ:AAPL) Advanced micro systems (NASDAQ:AMD) and General Electric (NYSE:GE) all saw large volumes surrounding yesterday's reports.
Let's take a closer look:
Apple (AAPL)
Apple's recipes are the business of the city this morning. The tech giant said earnings per share of $ 2.46, far exceeding Wall Street's forecast of $ 2.37. Revenues also exceeded expectations, at $ 58 billion against $ 57.50 billion.
AAPL shares are trading up to $ 10.65 or 5.31% before commercialization.
With the overnight surge, Apple's shares are expected to open to a new high for 2019. The gains extend what has become a vigorous recovery after the fourth quarter hype. Since the beginning of the year, the stock is now up 34%. Its price trend is rising above the rising moving average across all periods.
The peak of $ 233.47 recorded last year is quickly becoming a possible goal for the next quarter.
Keep the Apple action on your radar as the first choice for bullish games in all weaknesses.
In advance of earnings, option trading was balanced between calls and put options. Total activity jumped to 202% of the average daily volume, with 914,886 contracts negotiated. The calls barely exceeded represent 52% of the day.
Option premiums included an income gap of $ 9.14, or 4.6%, making the $ 10 spend this morning approximately as expected.
Advanced Micro Devices (AMD)
AMD shares are up 4.5% after a respectable earnings report. Adjusted earnings per share were 6 cents, while revenues reached $ 1.27 billion.
This year's pricing trend has given traders multiple chances to acquire brainstorming sessions and retracements. And most have generated easy profits. In the short term, AMD's shares saw a rise in moving averages of 200, 50 and 20 days. The gap this morning has the potential to create another breakout from the $ 29 level.
On the front of option trading, put options proved more popular than calls made yesterday. Activity increased to 149% of the average daily volume, with a total of 386,804 contracts negotiated. Prices accounted for 51% of the total.
Option premiums were widening in an income gap of $ 2.49, or 9%. Thus, the 4.5% jump after normal hours is quite moderate in comparison. Traders holding positions with short volatility, such as iron condors, should rise to decent profits today.
General Electric (GE)
General Electric shareholders sighed with relief on Tuesday after the company announced an increase in profits and a reduction in their cash flow. BPA came in at 14 cents against the expected 9 cents. Revenues also exceeded expectations at $ 27.3 billion, against 27 billion appeals.
GE's shares jumped out of the door and, after probing both higher and lower, finished almost at their starting point. The 4.5% gain, while positive, does not change the disorderly nature of the price trend. The 200-day moving average continues to decline, threatening to undermine stock rebuilding attempts.
The nice thing about GE's three months of hashing is that it creates clear lines in the sand against which to negotiate. The bulls should wait until we make $ 11. The bears should wait for a break of $ 9. Until then, treat the stock as dead money.
On the front of option trading, traders came after vengeful calls. Activity swelled to 202% of the average daily volume, with a total of 97,636 contracts traded; 69% of the trading came from the only purchase options.
The crush on implied volatility was in full screen yesterday with a metric falling to 43%. This places it at the 32nd percentile of its one year range. Premiums are calculated in daily movements of 27 cents or 2.7%.
At the time of writing this article, Tyler Craig did not hold any of the above titles. Check out his recently released Bearish Market Survival Guide learn how to defend your portfolio against market volatility.
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