As investors prepare for the unknown from Apple Inc.
Before the results of the second fiscal quarter marred by COVID-19, the technology giant, after Thursday’s closing bell, option traders assess in a less volatile way than the reaction. An option strategy known as straddle, a game of pure volatility that involves the simultaneous purchase of up and down options with monthly stock prices, prides itself in a one-day post-profit movement of 4.4% in both directions. This compares to a 5.1% two-way movement the day after gains in the past 8 quarters, and an average 4.6% movement in the past 20 quarters. Based on current prices – the stock rose 1.2% to $ 291.03 in the afternoon – this means the stock should close above $ 303.83 on Friday or below 278, $ 23 for rider buyers to earn money. Apple shares have lost 10% in the past 3 months, while the Dow Jones Industrial Average
decreased by 16%.