U.S. stock futures rose this morning, pointing to another positive open this week. Mood improves on wall street against the background of fairly robust earnings season and easing geopolitical tensions.
On the economic front, fed’s beige book will come in that day. Investors will be watching this report for hints on the fed’s forecast for the U.S. economy and inflationary pressures.
Against this background, the Dow Jones Industrial average futures rose 0.3%, the S&P 500 futures added 0.31% and the Nasdaq-100 index , the MICEX index rose 0.24%.
Turning to the options pits, volume rebounded sharply on Tuesday. Overall, about 19.5 million calls and 16.9 million puts crossed at the session. Index cboe one session equity put ratio, call volume jumped to 0.68. A 10-day moving average rose to 0.65.
Taking a closer look at Tuesday’s options activity, earnings the preparations are in full swing for Facebook, Inc. (Nasdaq:FB) and Microsoft (Nasdaq:Russian market). Meanwhile, Apple Is. (Nasdaq:the basic cost) options traders have met with a positive for iPhone x news headlines in the upcoming quarterly report.
Despite the continuing sluggish demand phone smartphone Apple found a way to come out on top once again. According to a recent report, the iPhone x raked in 35% of all profits from smartphones in the fourth quarter. Moreover, the iPhone 8 came in second place with 19.1% of the profits of smartphones in this quarter.
It was a bullish sign for Apple, heading in the company’s may 1 quarterly earnings report. Most analysts traders remain largely on the sidelines. On Tuesday, the volume rose to just 376,000 contracts, since the average Apple. Calls had below average, 57% of day to take.
When it comes to Apple earnings, however, there are still a lot of bull. Weekly 4 may put/call open interest ratio rests at 0.50, with twice as popular as calls and puts options most affected by earnings. Implieds prices in a post-earnings move of about 4.2% for AAPL stock.
Facebook, Inc. (FB)
A daily stream of negative news media exerts downward pressure on the background of the sentiment of the campaign on Facebook. This negativity has even influence on the activity options Facebook, judging by recent activity.
For example, the volume of yesterday’s 293,000 contracts arrived less than half of the average stock. In addition, calls only reached 57% in a day, well below the average FB daily percentage of 65%.
Company earnings reports next week, and traders options, oddly enough, heading into the event. Weekly April 27 to put the ratio/call OI rests at 0.66, with calls almost twice puts on the series. Finally, on 27 April implieds are waiting for 5.2 percent jump for the stock FB next event.
Microsoft Corporation (msft)by volume
Microsoft will join in the parade arrived on Thursday next week. Analysts had expected a profit of 85 cents a share on revenue of $25.77 billion. EarningsWhispers.com adds a whisper number of 91 cents per share.
Traders options Microsoft shares appear mostly bullish ahead of the event. Volume on Tuesday totaled 213,000 contracts, significantly above the daily average on Tuesday. In addition, calls made up 62% of the day to take.
Looking at the week of April 27 need, we find even more optimism. April 27 ratio put/call OI lies in a lowly 0.47, appeals strongly commanded. In addition, implieds prices in a potential 4.5% go to the msft stock. The positive reaction of the Russian market could exceed $100 after the release of quarterly reports next week, while a negative reaction would be to see support for the stock test about $90.
At the time of this writing, Joseph Hargett was long on Microsoft (msft) volume of shares.