Options Traders Bet on Magnificent 7 Rebound as Tech Giants Report Earnings
S&P 500 up 2.4% YTD while Mag-7 flat; traders favor calls over puts ahead of Apple, Alphabet, Amazon, Meta, Microsoft earnings
L'essentiel
- Options traders are betting the Magnificent 7 tech stocks will rebound this week as Apple, Alphabet, Amazon, Meta, and Microsoft report earnings.
- The S&P 500 is up 2.4% year-to-date while the Mag-7 has been flat.
- Calls are trading more expensive than puts in all five reporting names, with Alphabet options implying an unusually large 5.25% move despite the stock averaging only 1% swings in recent quarters.
Résumé généré par IA
As the S&P 500 continues its record streak, one important group of stocks has lagged the broader market: the Magnificent 7. Options traders are betting that could change this week. How Apple, Alphabet, Amazon, Meta, and Microsoft shares perform on earnings will likely decide how much higher the broader market can go. The S&P 500 is up 2.4% on the year, while the Mag-7 is basically flat. Calls are trading more expensive than puts in the five names that report this week, and call volume outpaces put volume in all but Alphabet. In the case of Alphabet, traders are betting on an unusually big move. Options prices around earnings imply a 5.25% move, even though the stock has only swung an average 1% in the last four quarters. That means those options look a bit rich compared to recent history.
