Earnings Preview: Angie's List Inc, Biogen Inc, and Texas Instruments Incorporated

Angie's List Inc (ANGI), Biogen Inc (BIIB), and Texas Instruments Incorporated (TXN) will report earnings tomorrow

Oct 20, 2015 at 1:47 PM
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Quarterly reports continue to roll in this week, with a slew of blue chips fresh out of the earnings confessional. Among the firms slated to report tomorrow are online review issue Angie's List Inc (NASDAQ:ANGI), biotech Biogen Inc (NASDAQ:BIIB), and semiconductor concern Texas Instruments Incorporated (NASDAQ:TXN). Below, we'll take the pre-earnings temperature of ANGI, BIIB, and TXN.

  • ANGI will unveil its quarterly figures before the open tomorrow. The stock was last seen flat at $6.19, but has added roughly 23% in October, and remains on pace to end the month atop its 10-month moving average for just the third time in two years. Over the past eight quarters, ANGI has averaged a single-session post-earnings move of 17.7%. This go-round, option traders are expecting an even bigger swing, as the stock's near-term at-the-money (ATM) straddle is pricing in a 23.8% move. Heading into earnings, option buyers have been ramping up their bearish exposure. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.81 stands higher than 81% of all other readings from the past year. However, Angie's List Inc's short-term options are still attractively priced, historically speaking, as the equity's Schaeffer's Volatility Index (SVI) of 78% registers in the 25th percentile of its annual range.
  • The options market is pricing in a 7.4% move for BIIB, which is also slated to report before the open tomorrow. In the session following its last eight earnings reports, Biogen Inc has averaged a 7.1% swing. At last check, BIIB has surrendered 2.2% to sit at $267.10, bringing its year-to-date deficit to 21.2%. Just last week, in fact, BIIB sank to a nearly two-year low of $254. Based on data at the ISE, CBOE, and PHLX, speculators are rolling the dice on a rebound for BIIB, buying to open calls over puts at much faster-than-usual clip during the past two weeks. Specifically, BIIB sports a 10-day call/put volume ratio of 1.71 -- higher than 86% of all other readings from the past year.
  • Lastly, option bears have been swarming TXN ahead of earnings tomorrow night, based on its 10-day ISE/CBOE/PHLX put/call volume ratio of 13.88 -- outranking 92% of comparable readings from the past year. The equity's SVI of 27% sits in the 35th percentile of its annual range -- an attractive indicator for near-term option buyers. Meanwhile, the stock's near-term ATM straddle indicates that traders are pricing in a 4% post-earnings move, bigger than the 2.9% swing TXN has averaged after the company's last eight turns in the earnings spotlight. On the charts, Texas Instruments Incorporated shares were last seen 0.4% lower at $52.43, struggling to overtake their 200-day moving average and year-to-date breakeven mark. 

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