Analysis: Apple, Facebook options reflect hopes for stock gains

By Doris Frankel (Reuters) - The options market is reflecting a higher probability of large upside moves in Apple Inc and Facebook Inc stock when both companies report quarterly earnings next week. Stock of Apple - the largest U.S. company by market value - is down 1 percent since January 1 while Facebook shares are up 95 percent. Many investors appear to be speculating on a rally rather than a sell-off in both stocks and are turning to the options market, buying calls at strike prices that are far above the current share price - also known as "out-of-the-money. ...

via Tech News Headlines - Yahoo! News http://news.yahoo.com/analysis-apple-facebook-options-reflect-hopes-stock-gains-215616435--sector.html