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Apple Expected Move 4.3% Following Earnings on Tuesday After the Close

Apple is expected to move 4.3%, according to signals in the options market, Jim Strugger, Derivatives Strategist of MKM Partners, tells TheStreet.

Apple is expected to move 4.3%, according to signals in the options market, Jim Strugger, Derivatives Strategist of MKM Partners, tells TheStreet’s Jill Malandrino. Strugger explains professional equity and options traders look at the implied move in the front month, at-the-money straddle, which determines how much a stock may move following the earnings print in either direction. This is in line with historical trading over the past eight quarters. Strugger says a zero-cost collar, selling a call to finance the purchase of a put or put spread, is one way to protect positions in which investors are already long the stock.

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