Next week will be the busiest period of earnings season, but five companies will receive the most attention from investors. More than 160 S&P 500 stocks are scheduled to report next week. This includes five of the Magnificent Seven members: Apple, Microsoft, Amazon, Alphabet, and Meta Platforms. These five represent a quarter of the S&P 500’s market capitalization and are particularly important to the index. Their results came at a critical time for the stock market as a whole. The S&P 500 hit a new intraday high on Thursday, but ended lower as uncertainty over the war between the United States and Iran weighed on prices. Indeed, Scott Rabner of Citadel Securities believes the environment continues to be favorable for stocks, as most corporate blackouts have ended and companies are able to carry out stock buybacks. This is “a meaningful tailwind for demand growth. U.S. companies have already approved about $452 billion since the beginning of the year, the strongest start on record,” he wrote earlier this week. LaVerner described five call option spreads that traders can use to predict next week’s news. A call spread involves buying and selling call options on one asset with the same expiration date but different strike prices. This allows traders to make profits while reducing risk. Buy MSFT Buy May 455/490 Call Spread Buy AMZN May 270/290 Call Spread Buy GOOGL May 355/375 Call Spread Buy META May 725/765 Call Spread Buy AAPL May 280/295 Call Spread “While the rally in large-cap tech stocks has been notable, the combination of light positioning, supportive valuations, and a highly concentrated earnings calendar leaves room for further growth. The upside is best manifested through a convex earnings structure,” Rabner wrote.
