Earnings Preview: Facebook Inc, Cirrus Logic, Inc., and Boeing Co

Facebook Inc (FB), Cirrus Logic, Inc. (CRUS), and Boeing Co (BA) will report earnings tomorrow

Jan 26, 2016 at 12:20 PM
facebook twitter linkedin

Wednesday will be another busy day for quarterly earnings, with social media giant Facebook Inc (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL) supplier Cirrus Logic, Inc. (NASDAQ:CRUS), and aerospace stock Boeing Co (NYSE:BA) ​among the companies slated to report. Below, we'll take a pre-earnings look at FB, CRUS, and BA.

  • FB has been slumping in 2016, off 8% so far. The shares have managed to stay atop support at their 200-day moving average, and -- despite a price-target cut Monday -- most analysts seem assured that new highs are ahead. Currently, 28 out of 29 brokerages call FB a "buy" or better. On the other hand, enthusiasm in the options pits has cooled lately. Meanwhile, the options market is pricing in a 10.3% post-earnings swing for FB after the company's Wednesday evening announcement-- much higher than the average single-session move of 4.7% over the last eight reporting periods. The stock was last seen down 0.6% at $96.41.

  • CRUS is trading 0.5% higher at $28.24, as traders await AAPL earnings after the market closes today. CRUS has been on a downtrend since last May, and earlier this month slashed its revenue forecast. Analysts have maintained their optimism, though, with five out of six sitting on "buy" or better ratings. Ahead of its own third-quarter results tomorrow night, struggling CRUS has racked up a 10-day put/call volume ratio of 3.08 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- higher than 95% of all readings in the past year. Traders are pricing in a hefty 14.8% post-earnings move for the stock, compared to an average one-day swing of 6.4% over the last eight quarters.

  • BA is off 12.6% already this year -- but today, the equity is up 1.9% at $126.32, rising in step with the broader Dow. Ahead of tomorrow morning's earnings report, RBC today cut its price target on the stock to $153 from $157. But nine of 15 analysts still call BA a "strong buy," and option traders have been especially bullish in recent weeks. At the ISE, CBOE, and PHLX, the stock's 10-day call/put volume ratio of 1.54 outranks 94% of the past year's worth of readings. Currently, BA options are pricing in a 5% post-earnings swing for the stock -- wider than its eight-quarter average move of 3%.

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners