Walt Disney Co (DIS), Akamai Technologies, Inc. (AKAM), and SolarCity Corp (SCTY) are preparing to report quarterly earnings
It's going to a be a busy week for earnings, with a number of
blue chips and social media stocks set to report. Among the companies ready to tell all tomorrow night are entertainment giant
Walt Disney Co (NYSE:DIS), cloud concern
Akamai Technologies, Inc. (NASDAQ:AKAM), and alternative energy firm
SolarCity Corp (NASDAQ:SCTY). Below, we'll take a pre-earnings look at DIS, AKAM, and SCTY.
- DIS notched a new annual low of $89.54 earlier amid stiff broad-market headwinds, and was last seen off 4.7% at $89.52. The stock may be poised to make a big move after Tuesday night's earnings report, as the options market is implying a single-day swing of 9.8% -- nearly tripling its average post-event move of 3.6% over the past eight quarters. If Walt Disney Co resolves to the upside this time around, a mass exodus of option bears could fuel the shares' fire. After all, DIS' 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at a 12-month peak of 1.42.
- AKAM option traders have been buying to open puts over calls at an accelerated clip in recent months. Specifically, the stock's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.66 ranks near the top quartile of its annual range. This is understandable, given Akamai Technologies, Inc.'s technical troubles -- the shares are down 6.1% this afternoon at $40.58, and earlier skimmed a two-year low of $40.46, after seeing their price target cut to $71 at D.A. Davidson. It's worth noting that short-term options on AKAM are relatively expensive right now, from a volatility standpoint. The stock's 30-day at-the-money implied volatility currently sits at 72.2%, residing in the top percentile of its annual range.
- SCTY is having yet another dismal day, dropping 8.9% at $26.95. In fact, in 2016 alone, the stock has already surrendered close to half its value. Given these losses, it's understandable that short-term option speculators are more put-focused than usual toward SolarCity Corp. Specifically, the equity's Schaeffer's put/call open interest ratio (SOIR) clocks in at 2.17, just 1 percentage point shy of an annual high, On the other hand, analysts are quite bullish toward the shares, potentially setting them up for a round of downgrades. Another big move is expected after SCTY hits the earnings stage tomorrow night. Specifically, the options market is pricing in a single-session post-event swing of 27.8%. By contrast, following the company's past eight reports, the shares have moved only 7.8%, on average, in the ensuing trading day.