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Options Market Expects Big Post-Earnings Move for This Solar Stock

Analysts have been skeptical toward underperforming JKS stock

Managing Editor
Mar 2, 2018 at 2:34 PM
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Alternative energy concern JinkoSolar Holding Co., Ltd. (NYSE:JKS) is expected to report fourth-quarter earnings on Monday. Overall, JinkoSolar stock has had underwhelming year on the charts, already shedding 24% in 2018. At last check, shares of the solar concern were trading up 1% at $18.20 -- but running into resistance around their 20-day moving average.

In terms of earnings reactions, JinkoSolar stock ended higher the day after reporting in five of the past six quarters. Looking back eight quarters, the shares have averaged a post-earnings move of 4.3% in either direction in the session after the company reports. For this particular quarterly report, the options market is pricing in a much larger-than-usual 13.6% move for Monday's trading, going by implied volatility (IV) data.

Short interest fell 14.3% during the most recent reporting period, though JKS shares failed to capitalize. What's more, these bearish bets still represent nearly 22% of the stock's total available float. The few analysts following JKS also harbor low expectations; all three following the renewable energy stock sport uneasy "hold" or "strong sell" recommendations.

 

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