Cheddar News' reporter Angela Miles reports from the Cboe floor with Scott Bauer, CEO of the Prosper Trading Academy, to break down Apple, Moderna, and Datadog earnings for options traders.

Earnings Breakdown for Options Traders

This next segment is brought to you by the world's leading derivatives and securities Exchange Network. Our reporter Angie Miles is standing by in Chicago with Scott Bauer CEO at the Prosper Trading Academy. Take away Angie. Absolutely. We'll talk to Scott in just a minute. I just want to give you a little context of what's going on here. We just had the opening bell and it's been kind of a muted opening so far. We'll talk about that. Go up there they go, they woke up. All right. This is what we want. So we do have apple earnings coming up after the close. That's a big name to watch with those earnings coming up, not seeing some big aggressive volume in the paper so far. But that could happen today. The strad I talked about this last week is when you buy the call at the same time indicating that we could see a move of around 4.2% up or down in apple that is smaller than the 5% I talked about last week. But I want you to know something there seems to activity in apple and the paper suggesting we won't see apple likely drop below $150. It's trading right around 167. Moderna, another hot stock to watch tends to be a player in the options market. Yesterday, we saw slightly more puts playing in that stock and we saw some aggressive volume in that one. Not only that, they're thinking that Moderna could move up or down around 7%. So we're seeing that on this one, there's some put hedging going on. Traders are a little anxious one final earnings. Let's talk about data dog. It's a security platform company that's in the cloud applications of papers, even one call trading for everyone. So traders are not sure, but we saw a lot of volume on data dog ford times. The normal average options paper is flowing on this one, that stock could see a big move of 11%. Now, I want to bring in a professional trader. We have Scott the Ceo of Prosper Trading Academy. I want to talk to you about Apple because these small moves that are being projected by the options market. I'm not so sure if Apple comes out with blow out numbers or that big cash on hand, investors might want to get into that stock, no doubt, Angie. And like you said, that expected move is about 4 to 4.5% a little lighter than normal. What I'm looking at though on Apple, on a longer trend is we've seen lower highs and lower lows. So Apple has gotten up to that point that 167 168 area where that could be a top. If we don't see good guidance coming out of them, I would look for a move lower. But as you said, you know, the option activity is suggesting nothing lower than possibly 150 or so. 50 day moving average is 158. That's a number I'd look for. Ok. Then I also talk about Moderna, what would be a trade for you there because Moderna might be a player here. Yeah, Moderna has bounced a little bit. They actually had some news out, had some earnings out this morning and revenues and profits were much, much lower than last year. But above expectation here, I like Moderna around the 1 30 area where that's where it was. That's some decent support. I would look to buy some 1 40 or 1 45 calls going out a couple of months. Oh, you're bullish on that stock. Wow. Ok. He's thinking that maybe that stock will trade above 145 dated dog. This was such a hot player like a year ago, two years old. This one was in play during COVID and lockdowns. Absolutely. Stock is up a little bit. It's at some major resistance. Now, around the 70 or 71 area, cloud is hot but I would be a little suspect here. So after earnings as we see, option implied, volatility really get crushed and option premium is cheap. I'm a put buyer here. Oh, you're doing a hedge play that definitely. Ok. And I think everybody is concerned about data dog because of Amazon's earnings report and what they had to say about cloud business. So thanks so much for helping me out today. Good to get your trade back to you in the studio. Have a great day, everybody. All right, Angie Miles, our reporter over at CBO with Scott Bauer CEO at Prosper Trading Academy to learn more about options trading this CBO dot com.