Investment Latest News: Options Action Suggests Apple Earnings Will not Roil Its Shares

Wochit 1:17 mins

Apple Inc is not expected to show a big post-earnings swing when it reports fiscal third-quarter results after the closing bell on Tuesday, but this could also mean investors are under-hedged in case the company delivers a shock. The options market is pricing in a potential move up or down of 4 to near 5 percent in Apple's stock price following the results. U.S. stock index futures rose, helped by China's efforts to avoid a hard landing for its slowing economy, but gains were likely to be capped as the S&P 500 notched a third consecutive record closing high. Attorneys for hedge-fund manager Steven A. Cohen are disputing federal civil charges that he failed to prevent insider trading at SAC Capital Advisors, saying he didn't read an email at the center of the allegations. The SEC says Cohen failed to prevent the two managers from illegally reaping profits and avoiding losses of more than $275 million. Rather than raise any red flags, Cohen praised one of the managers and rewarded the other with a $9 million bonus.

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