U.S. stock futures rose this morning, indicating a positive opening. On the Dow Jones is on track to break its four-session losing streak, but corporate profits is not over.
In fact, the Dow members Coca-Cola company (indexto) and United technologies Corporation (Ticker NYSE:utx on) to release their quarterly reports today.
On this background index Dow Jones MICEX index rose 0.63%, the S&P 500 futures gained 0.58 percent, and the Nasdaq-100 index futures are higher by 0.55%.
Turning to the options pits, volume on Monday was extremely low. Only about 15.7 million and 13.6 million calls puts crossed at the session. Index cboe one session equity put ratio/ring volume fell to two-week low of 0.61. The 10-day moving average is at 0.63.
Leading Monday activity, micron technology, Inc. (Nasdaq:MU) function call was active after the next volley from analysts at UBS. Elsewhere, Facebook Inc. (Nasdaq:FB) options activity was the lowest in years heading into tomorrow’s quarterly report. Finally, in the United States. (IndexT) has the probe collusion with the Ministry of justice ahead of earnings.
Micron Technology, Inc. (MU)
Ago, April 5, UBS initiated MU stock rated “sell” and target price of 35$. Dedication hit hard MU shares, sending them down more than 10% in the next two days. Yesterday, UBS reiterated a “sell” stance on the stock of MU, with predictable results.
Shares of Manchester United fell more than 3% to around 49$. According to UBS, micron may lose share in the DRAM and NAND markets to 2019 due to changes in the structure of production and technology.
MU traders favored calls in the midst of decline. Volume was light, arriving at contracts 277,000, or about 93% of the average daily MU. But, the calls made up 69% of all traded contracts.
There are signs that this increased attention to MU options can be the bulls cut their losses. In particular, can supply ratio/open tender interest increased to 0.67 from last Thursday’s reading of 0.60. Rising pessimism amid weak price action is a bearish signal for MU stock. Traders should keep a close eye on the situation.
Facebook, Inc. (FB)
Typically, stocks take the most active listing options on the popularity of its underlying options is inherent in the filter, in the end. Facebook, however, managed to make a list while posting the lowest average daily volume I have seen since I began to write this column. And he did it with earnings on tap tomorrow.
The total volume of share options Facebook came out in approximately 189,000 contracts yesterday, that would be impressive for other stocks. But this activity accounted for only 37% of the average daily FB. In other words, the volume functions of Facebook, as a rule, more than two thirds of the time last year.
Despite low overall, call volume has averaged 62% from yesterday’s make coming into line with the typical activity on Facebook.
Facebook is expected to show a profit of $1.36 per share on revenue of $11.41 billion tomorrow. This number is up almost 30% and 42%, respectively, for the year. EarningsWhispers.com adds a whisper number at $1.48 per share.
As for the week of April 27 need implieds prices in a post-earnings move of about 6%. The upper bound is at $175.75 and below the $156. Given that on April 27 to put the ratio/call OI has decreased from 0.66 in last Wednesday and today to 0.53, it seems that the FB options traders betting on post-earnings rally.
At&T Inc. (T)
AT&T is the earnings report after the close tomorrow. Analysts expect wall Street is looking for 18% jump in net profit to 88 cents a share and a 0.2% drop in revenue to 39.29 billion. That said, the Ministry of justice is casting a long shadow over the event.
We all know that AT&T is in the fight for approval of its acquisition of time Warner Inc. (TICKER NYSE:TWX). However, the company is now facing investigation into potential collusion with Verizon Communications, Inc. (NYSE:VZ).
According to reports, the Ministry of justice is considering whether the two companies colluded on wireless Internet standards to make it more difficult for people to switch to new phone carriers. Apple. (Indexshares aapl) was among those who reportedly requested the Ministry of justice to study the issue.
The recent negative attention has had a negative effect on the T-variants. For example, on April 27 to put the ratio/call OI increased from 0.41 last Tuesday in today’s reading of 0.48. Calls is dominated by yesterday’s volume, which is 60% of the total activity. This may be an indication that options traders are ditching the talk in favor of less exposure to what could be a volatile income statement.
At the time of this writing, Joseph Hargett held no positions in any of the aforementioned securities.