Earnings Preview: Barrick Gold Corporation, MGM Resorts International, and Nordstrom, Inc.

Barrick Gold Corporation (USA) (NYSE:ABX), MGM Resorts International (NYSE:MGM), and Nordstrom, Inc. (NYSE:JWN) are on tap to report earnings

Feb 17, 2016 at 1:48 PM
facebook twitter linkedin

Although earnings season is winding down, there are still a number of notable names waiting to unveil their quarterly earnings reports. Tonight, for instance, gold miner Barrick Gold Corporation (USA) (NYSE:ABX) will offer up its latest numbers. Tomorrow, meanwhile, casino operator MGM Resorts International (NYSE:MGM) will report in the morning, while retailer Nordstrom, Inc. (NYSE:JWN) will report after the close. Below, we'll take a pre-earnings look at ABX, MGM, and JWN.

  • While ABX has been basking in love from the analyst community recently, the sentiment among the options crowd is entirely different. In fact, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.84 is in the 81st annual percentile, meaning short-term speculators are more put-heavy than usual. If past is precedent, these option bears could be jumping ship tomorrow. Over the past eight quarters, ABX has averaged a single-session post-earnings move of 3.6% -- with the majority of the action occurring to the upside. In fact, Barrick Gold Corporation has been on a tear lately, adding more than 71% since skimming the $7 level in mid-December. Today, the shares are up 2.8% at $11.91, as gold moves higher ahead of the release of the minutes from the latest Federal Open Market Committee (FOMC) meeting.

  • MGM is up 4.3% at $19.98 this afternoon, despite recent reports that both Paulson & Co. and Omega Advisors, Inc. lowered their stakes in the firm. The stock has been rebounding since bottoming at a two-year low of $16.18 on Feb. 9, set to end atop its 30-day trendline for the first time since Jan. 6. Today, calls are crossing at three times the average intraday pace, with 22,850 contracts on the tape at last check. It appears a number of speculators are hoping that MGM Resorts International has a post-earnings breakout -- though much bigger than that of fellow casino concern Boyd Gaming Corporation (NYSE:BYD) -- buying to open the weekly 2/26 20-strike call. Historically speaking, MGM has averaged a single-session post-earnings move of 3.5% over the past eight quarters. This time around, though, the options market is projecting a bigger 10.2% swing.

  • UBS weighed in on a number of names today, and for JWN, this resulted in a price-target cut to $58 from $63. Nevertheless, the stock is up 3.1% at $52.45 -- and is on pace to close north of $52 for the first time since Dec. 16. While call volume has exploded to eight times the average intraday rate this afternoon, it appears speculators targeting JWN's out-of-the-money February 55 call may be hoping for a post-earnings volatility crush -- and limited upside momentum -- by selling these calls to open.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.

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!



Special Offers from Schaeffer's Trading Partners