Kinross Gold Corporation (USA) (KGC), Electronic Arts Inc. (EA), and Canadian Solar Inc. (CSIQ) are on deck to report earnings
Although the bulk of earnings season has passed, there are still
plenty of notable names that have yet to report. Tonight, for instance, gold miner
Kinross Gold Corporation (USA) (NYSE:KGC) and video game maker
Electronic Arts Inc. (NASDAQ:EA) will report earnings, while alternative energy firm
Canadian Solar Inc. (NASDAQ:CSIQ) will step up to the plate tomorrow morning. Here's a quick look at the pre-earnings options activity surrounding KGC, EA, and CSIQ.
- Long calls have been popular on KGC in recent weeks, per the stock's top-heavy 20-day call/put volume ratio of 4.29 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). While KGC's January 2017 6-strike call has seen the biggest rise in open interest over the past 10 sessions, shorter-term call buyers have targeted the May 6 strike. By initiating new long positions here, options traders expect KGC to rally north of $6 by next Friday's close -- when the front-month series expires -- territory not charted since August 2013. However, the shares of Kinross Gold Corporation have been rising in step with gold futures -- up 195% year-to-date at $5.36, and are fresh off a May 2 two-year high of $5.82.
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Short-term options traders are more call-heavy than usual toward EA, per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.71 -- in the 29th percentile of its annual range. If past is precedent, those buying to open calls could be hitting the bricks after tomorrow's results. Specifically, the stock has averaged a single-session post-earnings loss of 4.6% over the past three quarters. More broadly speaking, EA is down 6.2% year-to-date at $64.45, with recent rally attempts quickly halted in the $67 region. Should Electronic Arts Inc. take another post-earnings swoon, analysts may be encouraged to downgrade the stock -- pressuring the shares even lower. Currently, 87% of brokerages maintain a "buy" or better rating, with not a single "sell" to be found.
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Pre-earnings options traders have been lining up on the bullish side of the fence for CSIQ -- hoping the solar stock doesn't follow in the footsteps of SolarCity Corp (NASDAQ:SCTY). At the ISE, CBOE, and PHLX, for instance, CSIQ's 10-day call/put volume ratio of 4.29 sits higher than 82% of all comparable readings taken in the past year. Those purchasing the stock's near-term options are willing to pay a pretty penny, too. Specifically, CSIQ's Schaeffer's Volatility Index (SVI) of 91% arrives in the 80th annual percentile, meaning premium on the equity's short-term options is pricing in heightened volatility expectations. On the charts, Canadian Solar Inc. (NASDAQ:CSIQ) is down 60% year-over-year to $15.58, and hit a 2016 low of $15.02 earlier.
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