Monday
Nothing of note
Tuesday
CRWD – 7.5%
PDD – 9.6%
Wednesday
SNOW – 9.3%
Thursday
CRM – 5.5%
DELL – 6.6%
MRVL – 7.8%
Friday
Nothing of note
US Options Trader
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It’s a quiet week on the earnings front with just a handful on big names companies reporting. This week we have Crowdstrike (CWRD), Salesforce (CRM), Snowflake (SNOW) and Marvell Technologies (MRVL) as the main stock s to watch.
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
After the earnings announcement, implied volatility usually drops back down to normal levels.
Let’s take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate.
Last Week’s Earnings Moves
Last week’s we only had one company of interest report earnings:
ZM -0.1% vs 9.2% expected
ADSK -6.9% vs 6.6% expected
BBY -0.7% vs 7.1% expected
DKS +16.5% vs 9.5% expected
LOW -3.1% vs 4.4% expected
MDT +4.6% vs 3.5% expected
NVDA -2.5% vs 7.8% expected
DE -3.1% vs 4.7% expected
Overall, there were 5 out of 8 that stayed within the expected range.
Changes In Open Interest
TSLA, CHPT, AAL, KHC, GM, KVUE, NVDA and UBER saw some of the largest changes in open interest last week.