Apr. 24 at 1:10 AM
Cheap options pricing suggests Wall Street may be underestimating the scale of potential post-earnings moves in major tech stocks next week.
A wave of high-profile earnings is coming from large-cap tech and related companies, including Apple, Amazon, Alphabet, Meta Platforms, Microsoft, and Qualcomm. Analysts point to patterns in implied volatility that typically build ahead of earnings and then collapse afterward, creating a recurring “sawtooth” effect in options pricing.
The current setup indicates relatively low options costs compared to historical earnings-driven volatility, which could signal that markets are not fully pricing in the possibility of outsized moves. Broader market indicators, including elevated but not necessarily bearish conditions in the S&P 500 and rising volatility measures like the VIX, add context to the potential for sharp reactions.
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