Wednesday, October 16th 2019
Early Results from Q3 Earnings Season: Volatility Sellers Taking The First Week
The earnings season report tracks the actual move vs implied move from the straddle price.
With only 2% of firms reported, volatility sellers are doing better than buyers for the earnings announcement trade. The return to options traders is 74% with 46% of the 13 stocks reported being profitable. The start of this earnings cycle has been slow, historically averaging 87% profitability in week #1.
With only 2% of firms we track reported, volatility sellers are doing better than buyers for the earnings announcement trade. We measure the implied earnings move from the straddle and compare it to the actual move. Currently, 13 stocks have reported of the 739 we are tracking. The return to options traders is 74% with 100% being break even. 46% of the stocks have been profitable.
The top of the table above is the current season and the bottom part is the historical average of the past 12 earnings cycles. Normally this week #1 is the least profitable week historically averaging 87%.
There is a long way to go, but the start has been slow for this earnings cycle.
This earnings season, use the Option Scanner to quickly filter thousands of trades and find the best one for your strategy.
The earnings report scans for high volume with upcoming earnings announcements, research that stock's historical earnings information, and identify a potential options trade.