U.S. stock futures are trending higher, as Wall Street shrugs off weakness from Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) earnings and turns toward McDonald’s Corporation (NYSE:MCD) for leadership. Meanwhile, the Federal Reserve kicks off its two-day policy meeting today, with Fed watchers expecting little more than guidance for the central bank’s’ stimulus drawdown.

Finally, the both the May home price index and the July consumer confidence readings are on tap on the economic front later this morning.

Against this backdrop, futures on the Dow Jones Industrial Average have risen 0.5%, S&P 500 futures have added 0.26% and Nasdaq-100 futures are off by 0.11%.

On the options front, volume was anemic on Monday, with only about 13.1 million calls and 10.8 million puts changing hands. As for the CBOE, the single-session equity put/call volume ratio rose sharply to 0.68, though the 10-day moving average held at 0.60.

Diving into Monday’s options activity, Apple Inc. (NASDAQ:AAPL) calls were active as earnings draws nearer, but conflicting analyst reports on the iPhone 8 could create tension ahead of the event. Elsewhere, Netflix, Inc. (NASDAQ:NFLX) wowed attendees of the 2017 San Diego Comic Con over the weekend, driving bullish sentiment on the stock in the options pits. Finally, AT&T Inc. (NYSE:T) options traders are preparing for more disappointment heading into this afternoon’s quarterly report.

Apple Inc. (AAPL)

While Apple optimism is rising ahead of next week’s quarterly earnings report, analysts remain in contention over the status of the company’s key moneymaker. Analysts, like those at BMO Capital Markets contend that the iPhone 8 will remain on time for delivery in September, but that supplies will be limited due to technical manufacturing issues. In the other camp are analysts like those at RBC Capital Markets, which believe that the next iPhone will be delayed for weeks due to more pronounced tech manufacturing issues.

AAPL stock, meanwhile, has ridden a recent groundswell in optimism ahead of next week’s quarterly report, taking out former resistance at $150 and drawing its 10-day and 50-day moving averages into a bullish cross.

This combination of technicals and a looming earnings report has driven AAPL options traders toward calls in the past week. Volume on Monday topped 742,000 contracts, with calls making up an above average 66% of the day’s take. And there is plenty of room for improvement on the options sentiment front when it comes to earnings.

Specifically, the Aug. 4 put/call open interest ratio currently rests at a bearish reading of 1.23, with puts easily outnumbering calls among those options most affected by Apple’s quarterly report. Finally, implieds are pricing in a move of about 4.05% for AAPL stock next week, with the upper bound lying at $158.18 and the lower bound at $145.82.

Netflix, Inc. (NFLX)

Fresh off a more than 16% post-earnings surge, NFLX kept the ball rolling on Monday following an impressive showing at this weekend’s 2017 Comic Con in San Diego. Netflix unveiled some of the original content it’s been hemorrhaging cash in order to bring to subscribers.

Netflix packed Comic Con’s 6,000-plus conference hall when it offered up new tidbits on Marvel’s Luke Cage, Iron Fist, Daredevil and the coming superhero team-up series The Defenders. The company also previewed the trailer for season two of Emmy-nominated Stranger Things, as well as the much hyped original sci-fi film Bright, starring Will Smith.

NFLX stock dipped about 0.33% on Monday following the event, but options traders pushed further into call option territory. Volume on Monday arrived at 241,000 contracts, with calls accounting for an above-average 57% of the day’s take. Looking out to the August series, we find that call traders are beginning to take over in the options pits. The August put/call OI ratio has fallen to a perch at 0.85, down sharply from its average north of 1.00 for the past three months.

While NFLX stock is sure to enter a bit of a consolidation period at this point, a continued unwinding of pessimism could be a sign that the current bull rally is far from abating.

AT&T Inc. (T)

With the fate of the Time Warner Inc (NYSE:TWX) merger still in the hands of the government, AT&T is preparing to release its second-quarter earnings report after the close of trading this afternoon. Wall Street is looking for a profit of 74 cents per share, up from 72 cents in the same quarter last year. Revenue is expected to drop 1.7% year-over-year to $39.86 billion.

EarningsWhispers.com puts the whisper number for AT&T’s report flat with the consensus at 74 cents.

A flat report may be an improvement from expectations in the options pits, however. On Monday, T options volume rose to 242,000 contracts, with puts dominating the landscape, raking in 57% of the day’s take. What’s more, the Jul 28 put/call OI ratio has risen to a reading of 0.84 heading into tonight’s report, as puts continue to be opened at a faster rate than calls among options most affected by AT&T’s earnings.

However, Jul. 28 implieds are not pricing in much of a move — about 2.4% — following earnings, with the upper bound lying at $37.09 and the lower bound at $35.37.

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