Cheap stock options suggest a big post-earnings swing next week for Meta and other tech titans
Options trading data suggests a significant price swing is expected for major tech stocks like Meta, Apple, and Microsoft after their earnings reports next week. The S&P 500 is currently overbought, but earnings surprises could drive volatility.
Major tech companies, including Apple, Amazon, Alphabet, Meta Platforms, Microsoft, and Qualcomm, are set to release their earnings reports next week. Options trading data indicates a potentially large price swing after the reports, with some stocks having cheap straddles available. Meta Platforms has the cheapest straddle, priced at 4.82% of its stock price. The S&P 500 is currently overbought, but the earnings reports could drive significant volatility. The strategy involves buying the shortest-term straddle possible and exiting at the close of the first full day of trading after the earnings report. Apple is expected to have a relatively small price move due to accurate analyst estimates.
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