Shares of Apple Inc. AAPL, +2.43% jumped 2.5% toward a 7-week high, ahead of the technology behemoth's fiscal fourth-quarter report due out after the close, even as options traders are prepared for a more muted than usual stock reaction to the report. An options strategy knows as a straddle, a pure volatility play that involves the simultaneous buying of bullish and bearish options with at-the-month strikes expiring Friday, is implying a one-day, post-earnings stock price move of $4.16 in either direction, according to data provided by Option Research & Technology Services (ORATS).
Apple stock option traders prepared for a more muted post-earnings reaction than usual