Apple $AAPL beat earnings estimates by more than 41%, and Facebook $FB beat earnings by more than 93% sending both Nasdaq 100 index stock up in afterhours trading. It remains to be seen if both Apple and Facebook can keep their momentum during the regular trading session tomorrow as well as options expiration on Friday, April 30, 2021.
Stock traders ad options traders will have to settle their differences as both bullish bets and bearish bets settle in the options market. Call options and Put options expiring on Friday had relative low straddle prices for earnings risk as implied volatility didn’t reflect a huge expected price move.
Both Apple and Facebook have traded down in the past following a big beat on earnings when they initially traded at higher prices in the afterhours session. Since the liquidity during that session is relatively low, stocks can move up sharply on low relative volume as retail investors often show their enthusiasm for the news.