Tuesday’s Vital Data: Apple Inc. (AAPL), Netflix, Inc. (NFLX) and GoPro Inc (GPRO)

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Stocks slowed their advance on Monday as traders on Wall Street pulled back to digest the growing tide of quarterly earnings reports. Overall, the major market indices closed fractionally higher, with the S&P 500 closing essentially flat on the day.

Options volume remained elevated, though most of the activity was centered on Apple Inc. (NASDAQ:AAPL) ahead of the company’s quarterly report. The single-session CBOE equity put/call volume ratio bumped higher to 0.56, while the 10-day moving average edged lower to 0.67.

Outside of Apple’s earnings speculation, detractors are beginning to emerge from the woodwork on Netflix, Inc. (NASDAQ:NFLX), driving a round of profit taking on the stock. Finally, GoPro Inc (NASDAQ:GPRO) rocketed higher after reporting a deal with Toyota Motor Corp (ADR) (NYSE:TM).

Tuesday’s Vital Data: Apple Inc. (AAPL), Netflix, Inc. (NFLX) and GoPro Inc (GPRO)

Apple Inc. (AAPL)

Yes, AAPL stock has been covered ad nauseam heading into the company’s quarterly earnings report, but this hasn’t slowed the uptake in AAPL options or speculation heading into the report. On Monday, AAPL option volume surged to 1.2 million contracts, hitting a near-term peak for the equity. Calls remained the dominant contract, accounting for 76% of Monday’s total volume for AAPL.

Taking a last look at weekly July 24 series open interest, short-term options traders have set their sights on the $130, $135 and $140 call strikes, with OI totaling 38,440 contracts, 41,677 contracts, and 36,800 contracts, respectively. On the put side, open interest is considerably thinner, with peak put OI totaling just 18,681 contracts at the out-of-the-money $123 strike.

Overall, Wall Street expects Apple earnings to rise 40% to $1.81 per share on revenue of $49.26 billion. For potential trading ideas on AAPL stock, check out yesterday’s Apple earnings preview.

Netflix, Inc. (NFLX)

This week’s dip in NFLX stock should have largely been expected after the shares surge more than 18% in the wake of Netflix’s blowout quarterly earnings report. Furthermore, traders should expect to see a bit more profit taking on NFLX stock before the shares stabilize a bit. That said, detractors are beginning to come out of the woodwork amid this week’s pullback. For instance, Greenlight Capital recently laid out its reasoning for listing NFLX as a “sell” in a bearish research note on Netflix.

Sentiment in the options pits was mixed on NFLX stock yesterday. Volume rose to 231,335 contracts on Monday, with calls and puts splitting the difference on the session. Furthermore, NFLX’s total put/call open interest ratio currently rests at 0.98, with call and put OI in near balance.

Looking at weekly July 24 series options, peak open interest lies with the bears, as 6,130 contracts currently reside at the $110 put strike. Peak call open interest for the series, meanwhile, totals 4,603 contracts also at the $110 strike. Look for the $110 region to be a key pivot point for NFLX this week.

GoPro Inc (GPRO)

Wearable camera manufacturer GoPro edged its way onto today’s most active options listing, as traders were shocked with a Toyota Motor deal ahead of tonight’s quarterly earnings report. For the GoPro/Toyota deal, the latter will be putting GoPro action camera mounts inside of every 2016 Toyota Tacoma. Consumers will still need to buy a GoPro to put in the mounts, but once in position, they will be able to record all of their off-road adventures easily.

Also driving GPRO options volume, GoPro is set to release its second quarter earnings report after the close of trading this afternoon. Currently, the consensus is expecting a profit of 26 cents per share on revenue of $395.22 million. EarningsWhisper.com pegs the second-quarter whisper number at 28 cents per share.

Monday’s volume on GPRO rose to a near-term peak of 96,064 contracts, with calls accounting for roughly 70% of the day’s activity. Currently, the total put/call open interest ratio for GPRO rests at a bearish 1.29, with puts outnumbering calls among all open option contracts. Among weekly July 24 series options, peak open interest totals 5,512 contracts at the in-the-money $60 call strike, while peak put open interest numbers 2,649 contracts at the $55 strike.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/07/tuesdays-vital-data-apple-inc-aapl-netflix-inc-nflx-gopro-inc-gpro-options/.

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