AAPL Earnings Watch

AAPL has been holding up quite well while the market pulls back. It is schedule to report its quarterly earnings on Monday after the market closed. The rectangle on the daily closing price chart marks the projected price move of +/-31 that is being priced in by the options market. The projected move set the upside price target near 577 and the downside price target near 515 based on last trading session’s closing price.




There appears to be a high open interest at the 560 and 570 weekly call options, and somewhat concentrated open interest at the 510 and 500 weekly put options. Based on these open interest and the projected downside price target, the 510/500 could be credit put spreads. And if the 560/570 are credit call spreads, then the weekly pin after earnings could be near 560 unless AAPL sold off toward the 515 downside price target. If 560/570 are mostly bullish call spreads, then AAPL could move above 570 after earnings report.

PUT Open Interest:



CALL Open Interest:



As shown on the candlestick chart, AAPL pulled back toward the 61.8% FIB retracement (A) after it has closed at the 570 level (B), and it has been holding above the support trend line of the rising price channel. If AAPL does break above the 570 level, it has the possibility of moving toward the upper end of the price channel near the 620 level (C).