Market Overview

Based on Options Pricing, Here's 5 Companies' Implied Move After the Bell


Companies are typically more volatile when they report earnings than many other times during the year. By using option pricing, we can estimate where the market is pricing the current move.

Below are five companies that report quarterly earnings after the stock market closes. Based on the straddle price (closest at-the-money strike prices for one call and one put) we can estimate both the dollar move and percentage move currently being anticipated. Although not always accurate, it can help traders estimate what kind of surprise may be headed their way.

(Implied Move): Amazon 275 Straddle $19.20, an ~7% Move

(Implied Move): Starbucks 60 Straddle $2.98, an ~5% Move

(Implied Move): Deckers 60 Straddle $6, an ~10% Move

(Implied Move): Coinstar 55 Straddle $6.35, an ~11.5% Move

(Implied Move): Expedia 65 Straddle $7.70, an ~11.85% Move


Related Articles (AMZN + SBUX)

View Comments and Join the Discussion!

Posted-In: Earnings News Options Markets Trading Ideas