Apple earnings review

AAPL

The above graphic is via Estimize and is the EPS information they provide (I added the Red lines however). It appears that the consensus on Estimize is near $2.25 for EPS as it heads into Earnings AMC today (4/27).

Now for some Option information for $AAPL:

AAPL_cboe AAPL_nasdaq

Sure looks like the skew is to the Call side. One FA note: cash for Apple should get to $200 Billion late this year or early next year. Let that sink in …

Now for a quick look at the Daily chart:

AAPL_E

 

- DM 10:45 AM CST

 

Earnings Trades update

Centene $CNC  I remain Long stock at $56 (since 2/4) and Short The September $67.5 Calls (covered calls, need to adjust up/out soon). No change this week

Twitter $TWTR  I remain Long stock at $41.99 (since 2/5) and Short the June $45 Calls (covered calls, need to adjust up/out soon). No change this week

Celanese $CE  I am Long stock at $60 (since 4/17) and own the May 70/65/60 Collar PS. No change this week

Royal Caribbean $RCL  I am Short the May 75/70 Strangle. The Long $70 Calls have already been closed. I have Buy/Sell Short Stops set at 74/71 respectively. New

VMware $VMW  I am Long the May/July 90/95 Diagonal Call Calendar. The Short $79 Puts have already been closed New

Thermo Fisher Scientific $TMO  I am Long the May 135/140/145 Call Fly with Short $125 Puts. New

O’Reilly Automotive $ORLY  I am Long the May 200/230/240 Call Fly. The Short $200 Puts have already been closed. New

Edwards Lifesciences $EW  I am Long the May 140/145/150/155 Call Fly. The Short $130 Puts have already been closed. New

 

- DM 10:45 AM CST

 

 

Position Updates

A quiet week for me in the regular accounts – the focus continues to be on Earnings trades (both pre & post the event). There are 7 newly added positions this week to survive to the weekend:

Jack $JACK  I am Long the May 95/100/105 Call Fly with Short $85 Puts

United Rentals $URI  I own the May 95/98/91 RRCS

Earnings:  $RCL $VMW $TMO $ORLY $EW

Exits:

Here is the Summary:

04252015

- DM 10:30 AM CST

Options Expiration – April 24 weekly

Intuitive Surgical $ISRG  I own the 540/530/505 Bear Risk Reversal PS (this was a Collar PS to protect Long stock which hit a Stop on 4/22)

Qualcomm $QCOM  I am Short the 72/66 Strangle

Skyworks Solutions $SWKS  own the 95/88 1×2 Put Ratio (protects Long stock)

Western Digital $WDC  I am Long stock at $92 with a 97/96/93 Collar PS

iShares Brazil $EWZ  I am Long the ETF at $32.15 with Short $34 Calls (covered calls)

Express Scripts $ESRX  I am Long at $85 with Short $88.5 Calls (covered calls)

American Express $AXP  own the 77/75 1×2 Put Ratio

Caterpillar $CAT  I am Long a 82/79 PS (left over part of a Collar PS)

Monsanto $MON  I am Long at $113.4 with Short $117 Calls (covered calls)

Boeing $BA  I am short the 157.5/149 Strangle (left over from Earnings trade)

International Business $IBM  I am Long stock at $168 (hedge) with a 165/170 1×2 Call Ratio (Earnings)

Ebay $EBAY  I am Long the $56.5 Calls and Short stock at $59.5 (hedge)

Facebook $FB  I am Short the 88/80 Strangle (left over from Earnings trade)

 

- DM 6:00 PM CST

 

International Business Machines

I have an Earnings trade for $IBM using April 24 weekly Options. This is what remains from the original Look Both Ways trade:

  • Long the 165/170 1×2 Call Ratio
  • Short the $160 Puts (2x, left over pieces from the 1×2 Put Ratio). The Long $165 Put were StC on 4/21. I will be doing a BtC on the Short $160 Puts today and will pull the Sell Short Stop that was set at $162
  • L stock at $168 (that is where the Buy Stop was set, not $170 as I reported earlier)

 

- DM 11:15 AM CST

 

Earnings Trades for 4/22 BMO

I have 2 trades that got filled today for Earnings 4/22 BMO (before market open):

Boeing $BA  Long the Apr 24w 155/157.5/149 RRCS. This was done for EVEN (takes margin until Friday, or the Short Puts are closed, whichever comes first)

Thermo Scientific $TMO  Long the May 135/140/145 Call Fly with Short $125 Puts for a $.50 debit (takes margin, done with the 1st week Rule exception)

 

- DM 5:00 PM CST