Apple and Amazon report after the bell; options market signals mixed expectations

• Apple options traders expect a 3.4% post-earnings move, more than double the 1.5% median from the past four reports, with net trade sentiment slightly bearish despite $634 million in options premium
• Amazon options show net positive sentiment of nearly $3 million and 100,000 deltas, with an expected 6.6% move compared to the 7% median over the past four quarters
• Recent big-tech earnings have produced mixed results, with winners and losers paired together, making it unlikely both Apple and Amazon will rally simultaneously

Market Summary: Apple and Amazon Earnings Preview

Key Companies and Performance

Apple (AAPL) and Amazon (AMZN) are reporting earnings after the bell, with mixed signals from the options market suggesting uncertain outcomes.

Apple has surged 25% year-to-date, hitting record highs with a 7% rally since the S&P 500's June 2 peak. The stock currently trades around $332, down 1.78% in pre-market trading.

Amazon remains flat for the year, showing no significant gains or losses.

Options Market Signals

Apple: Options traders are pricing in a 3.4% post-earnings move—more than double the median 1.5% move from the past four quarters. Of $634 million in options premium traded Wednesday, $470 million was in calls, though many were sold positions. Net sentiment leans slightly bearish, with the most popular contract being 330-strike puts requiring a 3%+ drop to profit.

Amazon: Expected to move 6.6% post-earnings, slightly below the 7% median from recent quarters. Despite $615 million in options premium weighted toward puts, traders appear to be selling volatility rather than buying protection. Net sentiment is positive by approximately $3 million and 100,000 deltas.

Market Context

Recent big-tech earnings have shown mixed results, with winners and losers emerging simultaneously, creating challenging conditions for market bulls hoping to end a difficult week positively. The divergent year-to-date performance between Apple (strong gains) and Amazon (flat) suggests the market may deliver split results again, potentially sending these stocks in opposite directions post-earnings.