In Chicago we have a saying – the tape doesn’t lie.
Check out the open interest for the February 2016 option contracts on AAPL prior to earnings today. This snapshot was taken at approximately 11:28AM ET on January 26 (the morning before the earnings release) and AAPL was trading right around $100 at the time. Open interest suggests many permabulls were loading up in the days leading up to Tuesday’s earnings release.
Then, check out the disparity in put option contract volume today. Who knew?
Where will AAPL head on Wednesday? The market maker move was anticipated at roughly +/- $6 above or below that nice round $100 level. What will AAPL do on Wednesday? Who knows.