Jump to content

FAANG Earnings Week Ahead: Apple, Amazon, Google, Meta, Microsoft


Recommended Posts

apple company stock ticker on smartphone

JUL 25, 2022

FAANG Earnings Week Ahead: Apple, Amazon, Google, Meta, Microsoft

BY:MIKE BUTLER | Tastytrade

Earnings Explorer week of July 25

Last week brought quite a stir in the market – Monday through Thursday we saw great strength in the NASDAQ and S&P 500, with strong earnings moves in TSLA and NFLX – with the S&P 500 market down 55 points on Friday and so many big names reporting earnings this week, I’d be surprised if we did not see some big market moves! Let us look at an earnings preview for this week below.

 

Number 1 icon

 Apple

AAPL – reporting Thursday the 28th AMC (after market close) - 6 pt. weekly expected move - 4% of the stock price

AAPL has sold off quite aggressively over the past few months, but surprisingly it has the lowest expected move relative to the stock price compared to the other big-name stocks reporting this week. Outside of the weekly cycle implied volatility, AUG & SEP are both flatlining around the same level of 33% - I’m looking at calendar and diagonal spreads to take advantage of the near-term high IV% in the short-term cycle, without paying for much of an IV% contraction in AUG/SEP. The short option will have one day to expiration if the trade is placed on Thursday as well, so this is my second favorite trade for the week!

 

Number 2 icon

 Microsoft

    MSFT – reporting Tuesday the 26th AMC – 12 pt. weekly expected move - 4.5% of the stock price

    MSFT is a mirror image of AAPL’s IV% structure, with a slightly higher IV% in AUG/SEP. I am still looking at the same strategies in MSFT with flatlined IV% in the back months. Calendar & Diagonal setups on Options Trading Concepts Live on Tuesday at 11 am CST!

     

    Number 3 icon

     Amazon

      AMZN - reporting Thursday the 28th AMC – 8 pt. weekly expected move - 6.5% of the stock price

      AMZN did not see the post-split rally many had hoped for, and now the expected move for earnings is still relatively low compared to the stock price. 50% IV around the AUG/SEP cycle is higher than the previous stocks covered, but these figures are still relatively low compared to the LEAP expiration cycles of 45%. This is another Thursday announcement, which sets up well for aggressive IV crush weekly short options trades like diagonal spreads, calendar spreads, ratio spreads, broken wing butterflies etc.

       

      Number 4 icon

       Alphabet

        GOOGL – reporting Tuesday the 26th AMC – 7 pts. weekly expected move - 6% of the stock price

        GOOGL’s stock price finally split, so now we’re looking at a much more affordable $107 stock price! Still, low IV% here mimics a similar environment as AMZN – This is the weakest setup of the group, with low IV% and a Tuesday announcement, where weekly options may not decay as aggressively as Thursday announcement options will.

         

        Number 5 icon

         Meta

          META – reporting Wednesday the 27th AMC – 19 pt. weekly expected move - 11% of the stock price

          This is the largest expected move of the bunch, and calendar spreads set up in an interesting way – the IV% structure is similar to NFLX in the sense that a SEP OTM option cost basis can be reduced by upwards of 30% for many strikes by selling the weekly option against it. I am looking at a double OTM calendar spread personally, but I’ll do a deep dive on OTC Live on Wednesday!

          Link to comment

          Create an account or sign in to comment

          You need to be a member in order to leave a comment

          Create an account

          Sign up for a new account in our community. It's easy!

          Register a new account

          Sign in

          Already have an account? Sign in here.

          Sign In Now
          • image.png

          • Posts

            • As the Bitcoin halving event in April 2024 approaches, the cryptocurrency market is under intense scrutiny. The halving of miner rewards every four years not only regulates the supply of new bitcoins but also profoundly impacts market sentiment and supply-demand dynamics. This period will provide unique opportunities and challenges for the Qmiax exchange.   Halving events often increase the visibility of Bitcoin and typically lead to price and adoption rate increases, sparking widespread discussions about blockchain technology, Bitcoin network dynamics, and cryptocurrencies as a unique asset class. As an industry builder, Qmiax has prepared thoroughly for the upcoming halving event. The platform has not only strengthened its technical support to handle potential high transaction volumes but also provided educational resources and market analysis to help users better understand the halving event and its potential impact on the market.   History shows that although Bitcoin has seen price increases and expanded adoption rates in the months following halving, market reactions to each halving event have been different. The 2024 Bitcoin halving event presents unprecedented characteristics in several key aspects, requiring investors and market participants to remain vigilant and prepared for possible market fluctuations. Qmiax has strengthened its market analysis capabilities, providing real-time data and in-depth technical analysis to assist users in making well-informed decisions.   During this period, Qmiax has introduced a variety of new tools and services to support the trading needs of users in a high-volatility environment. These tools include enhanced risk management settings, more flexible trading options, and enhanced security measures to ensure the safety of the assets and transaction data of users.   In terms of education and support, Qmiax has launched a series of educational workshops and online courses on Bitcoin halving and its impact on the crypto market. These resources aim to enhance the market knowledge of users, enabling them to make wiser investment decisions during this critical period. Through these efforts, the platform has not only strengthened customer trust and satisfaction but also reinforced its position as a leader in market education.   The platform has enhanced its collaboration with other major cryptocurrency markets globally, ensuring consistent services and support worldwide. With this global perspective, Qmiax continues to demonstrate its influence and innovation in the cryptocurrency trading field.   With the Bitcoin halving event approaching, Qmiax is fully prepared to meet this market milestone. Through technological innovation, customer education, and global market cooperation, the platform not only supports the current market but also lays the foundation for future market changes. In the ever-evolving world of cryptocurrencies, Qmiax is committed to providing leading services and solutions, leading the industry forward.
            • Gold Elliott Wave Analysis  Function - Trend Mode - Impulse Structure - Impulse wave Position -Wave 4 Direction - Wave 5 Details -  Wave 4 has reached the extreme area and bounced off the 2300 MG1. We will expect wave 5 to progress higher. However, it’s still in the early stages. Invalidation below 2245.17. Gold has undergone a retracement since its peak on April 12th, following a remarkable surge to a fresh all-time high. Despite this pullback, the underlying bullish momentum remains robust and is anticipated to reassert itself once the corrective phase concludes. In today's analysis, we delve into the potential areas where Gold may discover the necessary support to propel its next upward movements.   Zooming into the daily chart, our Elliott Wave analysis commences with identifying an impulse wave sequence originating from the low at 1614, marking the termination of wave (IV) at the supercycle degree back in September 2022. Presently, the supercycle wave V is unfolding, currently navigating through the third leg of the cycle degree, denoted as wave III. Within this wave III, classified as an impulse wave, we find ourselves within the third sub-wave, indicated as blue wave '3' of primary degree, further delineated into wave (3) of intermediate degree. Within this intricate structure, the price action appears to be nearing the culmination of minor degree wave 4. Consequently, the impulse sequence characterizing the intermediate wave (3) has yet to finalize, let alone the overarching supercycle wave (V). Thus, Gold's bullish trajectory remains firmly intact, advocating for a strategic approach of buying into the dips within this robust trend. Presently, the price appears to be undergoing a dip corresponding to wave 4 of (3), with an anticipated subsequent uptrend in wave 5.    Transitioning to the H4 chart, our focus narrows on the completion of wave 4, manifesting as a zigzag pattern since the peak on April 12th. Conventionally, the termination of the third leg of a zigzag typically occurs at extensions ranging from 100% to 138.2% of the initial leg's length from the subsequent corrective move. However, an extension beyond 138.2%, particularly to 161.8%, tends to invalidate the zigzag pattern. In this context, we cautiously assert that the zigzag for wave 4 might have concluded, with a critical level of invalidation identified at 2245. Nonetheless, further confirmation is sought through the emergence of more bullish candle formations. Meanwhile, the target projection for wave 5 remains at 2500, aligning with the continuation of Gold's upward trajectory within the Elliott Wave framework. Technical Analyst : Sanmi Adeagbo Source : TradingLounge.com get trial here!        
            • Surprising US PMI drops contrast with Europe’s gains in services, pushing EUR/USD higher as markets recalibrate economic outlooks and monetary policy expectations.   Source: Getty   Forex Euro Pound sterling European Union Inflation EUR/USD Written by: Richard Snow | Analyst, DailyFX, Johannesburg   Publication date: Wednesday 24 April 2024 07:28 Flash PMI data provides unflattering US outlook, Europe improves German and EU manufacturing remains depressed but encouraging rises in flash services PMI results suggest improvement in Europe. UK manufacturing slumped well into contraction, but also benefitted from another rise on the services front. It was the US that provided the most surprising numbers, witnessing a decline in services PMI and a drop into contractionary territory for manufacturing – weighing on the dollar. EUR/USD rises after us PMI shock EUR/USD responded to lackluster flash PMI data in the US by clawing back recent losses. The euro attempts to surpass the 1.0700 level after recovering from oversold territory around the swing low of 1.0600. The pair has maintained the longer-term downtrend reflective of the diverging monetary policy stances adopted by the ECB and the Fed. A strong labour market, robust growth and resurgent inflation has forced the Fed to delay its plans to cut interest rates which has strengthened the dollar against G7 currencies. The surprising US PMI data suggests the economy may not be as strong as initially anticipated and some frailties may be creeping in. However, it will take a lot more than one flash data point to reverse the narrative. If bulls take control from here, 1.07645 becomes the next upside level of interest followed by 1.0800 where the 200 SMA resides. On the downside, 1.06437 and 1.0600 remain support levels of interest if the longer-term trend is to continue. EUR/USD daily chart     Source: TradingView EUR/GBP surrenders recent gains EUR/GBP rose uncharacteristically on Friday when risks of a broader conflict between Israel and Iran subsided. In addition, the Bank of England’s(BoE) Deputy Governor Dave Ramsden stated that he sees inflation falling sharply towards target in the coming months, sending a dovish signal to the market. Today the BoE’s chief Economist Huw Pill tried to walk back such sentiment, stressing that the bank needs to maintain restrictiveness in its policy stance. He did however, echo Ramsden’s remarks by saying the committee is seeing signs of a downward shift in the persistent component of the inflation dynamic. EUR/GBP appears to have found resistance around 0.8625 and has traded lower after the PMI data, even heading lower than the 200 SMA. A return to former channel resistance is potentially on the cards at 0.8578. Prices settled into the trading range as central bankers mulled incoming data and the prospect of a first rate cut appeared a fair distance away. Longer-term, the ECB is on track to cut rates in June, meaning sterling will extend its interest rate superiority and is likely to see the pair test familiar levels of support. EUR/GBP daily chart   Source: TradingView       This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
          ×
          ×
          • Create New...
          us