Streaming staple Roku, Inc. (NASDAQ:ROKU) is used in North America, Latin America and throughout Europe. The company’s primary goal is to provide advertisers with a flexible streaming platform to run services such as Disney+, Netflix, and Amazon Prime.

Roku recently announced the hiring of former Chief Architect of Siri at Apple, Brian Pinkerton, as Senior Vice President of Advanced Development. The move signals hopes of advancing the company’s technical innovation and strategic software development.

Roku stock has doubled in value in 2020 and more than quadrupled off 52-week low of $58.22 in March. The shares' 45% monthly gain for November culminated in a record high of $293.65 on Monday. And for the past two weeks, a floor and bull flag pattern appears to be emerging just above the $270 level.

It’s certainly a good time for contrarians to weigh in, considering the equity’s Schaeffer’s put/call open interest ratio (SOIR) of 1.25, which sits three percentage points from an annual high. This means short-term options traders have rarely been more put-biased in the past 12 months.

Options are an intriguing route, considering the stock’s Schaeffer’s Volatility Index (SVI) of 49% sits higher than just 15% of all other annual readings, meaning options traders are pricing in relatively low volatility expectations at the moment.

Overall, Roku’s numbers are impressive, despite the company’s current lack of profitability. Roku’s advertiser-friendly business model has allowed the company to grow revenue exponentially over the years. Roku also has a great balance sheet, with over $1 billion in cash. The company's cash is more than double the $439 million in debt being carried. In addition, as traditional entertainment continues to be left in the dust by streaming and cloud services, Roku looks set to reap a lot of the benefits of this ongoing change. Stay-at-home stocks seem to be parking on top of going-out stocks for the foreseeable future.

Stocks were relatively quiet on Wednesday, after a disappointing jobs data release, as well as the continued stimulus stalemate weighed heavy on investor sentiment. The Dow Jones Industrial Average (DJI - 29,883.79) gained 59.9 points on the day yesterday. The S&P 500 Index (SPX - 3,669.01) gained 6.6 points on Wednesday and the Nasdaq Composite (IXIC - 12,349.37) was down 5.74 points. The Cboe Volatility Index (VIX - 21.17) fell 0.4 point during yesterday's trading session.

Today's stock market schedule is set to make some noise, though, with a slew of employment data slated to be released. Meanwhile, Markit Services PMI and ISM services index information is due to be released. Plus, a ton of companies will be stepping up to the earnings confessional including  DocuSign (DOCU), Signet Jewelers (SIG), Marvell (MRVL), Ulta Beauty (ULTA), and Kroger (KR).

For your convenience, we have rounded up the companies slated to release earnings today, December 3:

The AZEK Company, Inc. (NYSE:AZEK -- $35.64) engages in manufacturing and selling building products. AZEK will report its fourth-quarter earnings before the bell today.

Canadian Imperial Bank of Commerce (NYSE:CM -- $85.10) provides various financial products and services. CIBC will report its fourth-quarter earnings before the bell today.

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL -- $141.66) develops and operates the Cracker Barrel Old Country Store concept in the United States. Cracker Barrel will report its first-quarter earnings of 2021 before the bell today.

Dollar General Corporation (NYSE:DG -- $217.54) is a discount retailer providing various merchandise products. Dollar General will report its third-quarter earnings before the bell today.

Donaldson Company, Inc. (NYSE:DCI -- $53.14) manufactures and sells filtration systems and replacement parts worldwide. Donaldson will report its first-quarter earnings of fiscal 2021 before the bell today.

GMS, Inc. (NYSE:GMS -- $30.24) distributes wallboards, suspended ceilings systems, and complementary building products. GMS will report its second-quarter earnings of fiscal 2021 before the bell today.

The Kroger Co. (NYSE:KR -- $32.29) operates as a grocery retailer in the United States. Kroger will report its third-quarter earnings before the bell today.

Methode Electronics, Inc. (NYSE:MEI -- $35.73) designs, manufactures, and markets component and subsystem devices. Methode Electronics will report its second-quarter earnings of fiscal 2021 before the bell today.

The Michaels Companies, Inc. (NASDAQ:MIK -- $10.25) owns and operates arts and crafts specialty retail stores. Michaels will report its third-quarter earnings before the bell today.

SecureWorks Corp. (NASDAQ:SCWX -- $12.15) provides technology-driven information security solutions. SecureWorks will report its third-quarter earnings before the bell today.

Signet Jewelers Limited (NYSE:SIG -- $29.81) engages in the retail sale of diamond jewelry, watches, and other products. Signet Jewelers will report its third-quarter earnings before the bell today.

The Toronto-Dominion Bank (NYSE:TD -- $54.77) provides various personal and commercial banking products and services. Toronto-Dominion Bank will report its fourth-quarter earnings before the bell today.

Cloudera, Inc. (NYSE:CLDR -- $11.20) provides a suite of data analytics and management products. Cloudera will report its third-quarter earnings after the market closes today.

The Cooper Companies, Inc. (NYSE:COO -- $334.61) operates as a medical device company worldwide. Cooper will report its fourth-quarter earnings after the market closes today.

DocuSign, Inc. (NASDAQ:DOCU -- $217.70) provides cloud based software in the United States and internationally. DocuSign will report its third-quarter earnings after the market closes today.

Domo, Inc. (NASDAQ:DOMO -- $36.91) operates a cloud-based platform in the United States. Domo will report its third-quarter earnings after the market closes today.

Marvell Technology Group Ltd. (NASDAQ:MRVL -- $45.62) designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. Marvell will report its third-quarter earnings after the market closes today.

Medallia, Inc. (NYSE:MDLA -- $33.81) provides an enterprise Software-as-a-Service platform. Medallia will report its third-quarter earnings after the market closes today.

Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI -- $86.78) operates as a retailer of brand name merchandise. Ollie's Bargain Outlet will report its third-quarter earnings after the market closes today.

PagerDuty, Inc. (NYSE:PD -- $34.28) operates a platform for real-time operations. PagerDuty will report its third-quarter earnings after the market closes today.

Science Applications International Corporation (NYSE:SAIC -- $94.16) operates as a retailer in the United States. Science Applications will report its third-quarter earnings after the market closes today.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI -- $15.47) designs, manufactures, and sells firearms worldwide. Smith & Wesson Brands will report its second-quarter earnings of fiscal 2021 after the market closes today.

Ulta Beauty, Inc. (NASDAQ:ULTA -- $282.00) operates as a beauty retailer in the United States. Ulta Beauty will report its third-quarter earnings after the market closes today.

Yext, Inc. (NYSE:YEXT -- $18.71) is a search experience cloud company. Yext will report its third-quarter earnings of fiscal 2021 after the market closes today.

Zumiez, Inc. (NASDAQ:ZUMZ -- $38.08) operates as a specialty retailer of apparel, footwear, accessories, and hardgoods. Zumiez will report its third-quarter earnings after the market closes today.

Zuora, Inc. (NYSE:ZUO -- $11.58) provides cloud-based software on a subscription basis. Zuora will report its third-quarter earnings after the market closes today.

Here is a quick recap of how yesterday’s earning calls played out:

Patterson Companies, Inc. (NASDAQ:PDCO -- $27.70) distributes and sells dental and animal health products. Earnings per share increased 61.54% over the past year to $0.63, which beat the estimate of $0.38. Revenue of $1,553,000,000 rose by 9.44% from the same period last year, which beat the estimate of $1,420,000,000.

Royal Bank of Canada (NYSE:RY -- $82.66) operates as a diversified financial service company worldwide. Earnings per share were up 2.42% over the past year to $1.69, which beat the estimate of $1.61. Revenue of $8,389,000,000 declined by 2.27% year over year, which beat the estimate of $8,050,000,000.

The Descartes Systems Group, Inc. (NASDAQ:DSGX -- $58.48) provides cloud, device, and data content-based solutions. Earnings per share were up 36.36% year over year to $0.15, which beat the estimate of $0.14. Revenue of $87,508,000 higher by 5.40% from the same period last year, which beat the estimate of $85,980,000.

Elastic N.V. (NYSE:ESTC -- $120.80) delivers technology that enables users to search through structured and unstructured data. Earnings per share rose 86.36% over the past year to ($0.03), which beat the estimate of ($0.20). Revenue of $144,894,000 higher by 43.31% year over year, which beat the estimate of $130,500,000.

Guess', Inc. (NYSE:GES -- $16.32) designs, markets, distributes, and licenses lifestyle collections of apparel and accessories. Earnings per share increased 163.64% year over year to $0.58, which beat the estimate of $0.05. Revenue of $569,284,000 declined by 7.58% from the same period last year, which beat the estimate of $515,580,000.

Okta, Inc. (NASDAQ:OKTA -- $236.99) provides identity management platforms. Earnings per share rose 157.14% over the past year to $0.04, which beat the estimate of ($0.01). Revenue of $217,379,000 rose by 42.04% from the same period last year, which beat the estimate of $202,700,000.

PVH Corp. (NYSE:PVH -- $81.80) operates as an apparel company. Earnings per share decreased 57.42% over the past year to $1.32, which beat the estimate of $0.24. Revenue of $2,118,000,000 declined by 18.16% year over year, which beat the estimate of $2,000,000,000.

Semtech Corporation (NASDAQ:SMTC -- $67.94) designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. Earnings per share were up 14.63% over the past year to $0.47, which beat the estimate of $0.46. Revenue of $154,082,000 higher by 9.27% from the same period last year, which beat the estimate of $149,830,000.

Zscaler, Inc. (NASDAQ:ZS -- $151.68) operates as a cloud security company worldwide. Earnings per share increased 366.67% year over year to $0.14, which beat the estimate of $0.06. Revenue of $142,578,000 up by 52.34% year over year, which beat the estimate of $132,310,000.

Looking ahead to Friday, the trading week will close out with the nonfarm payrolls and the latest unemployment rate. Average hourly earnings, trade deficit and factory orders data are on the docket for tomorrow as well. This data will be joined by a handful of earnings reports including HD Supply (HDS) and Big Lots (BIG).

As new traders flood the market, a return to options basics may help novices understand the fundamentals of options trading. To better assist them, we will be running posts diving into the finer details of options education. This week, we are looking at hedging -- a simple idea that often takes on a more advanced meaning when put into practice in the market.

If a trader is to make any sort of bet about the future of an investment, they may not necessarily want to put "all their eggs in one basket." A hedge, most simply, is an opposing position to a related asset. Hedging reduces the potential risk of adverse price movement, so if the security doesn't go the way you were hoping, you still have this opposing position to fall back on. At the end of the day, it limits the affects of both risk and reward.

A common example in daily life is insurance. For example, buying travel insurance costs some money, but it limits the risk of having to spend a great deal more money if something unexpected comes up. On Wall Street, it can be prudent to expect volatility, or, as we noted for insurance, the "unexpected." Hedging has investors transferring some of that potential risk in various ways, such as eyeing two sector competitors, both bullish and bearish options for the same stock, etc. 

For options traders, there are quite a few different strategies that can be used to hedge. Protective puts, for example, are used to hedge against losses on an existing stock position, while protective calls are often used by short sellers to limit the risk of potential upside.  

The shares of Teladoc Health Inc (NYSE:TDOC) are around flatline this afternoon. Though the healthcare stock has seen pressure from the $200 level in recent weeks, the security is still enjoying an impressive 133.6% year-to-date lead. Even better, the equity's latest pullback has it near a historically bullish trendline, which could serve to push TDOC higher in the coming weeks. 

More specifically, Teladoc stock just came within one standard deviation of its 200-day moving average, after spending most of 2020 above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, two similar signals have occurred during the past three years. One month after each signal, TDOC enjoyed an average return of 14.5%. From its current perch of $195.03, a move of similar magnitude would put the stock up past $223.

Though shorts are already hitting the exits, there is still plenty of pessimism left to be unwound, which could push the security even higher. Short interest dropped 7% in the last reporting period, but the 15.37 million shares sold short still make up 21.5% of the stock's available float, or nearly five days to cover at TDOC's average pace of trading.

Lastly, now seems like a decent time to weigh in on Teladoc stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 54% sits in the relatively low 25th percentile of its annual range. This means the stock is currently sporting attractively priced premiums. 

With a tumultuous month of September finally behind us, the first full week of October won't offer much of a breather as coronavirus and election concerns escalate. The economic calendar will feature a Fed update, and investors will also be keeping an eye on crude oil inventories and energy data. The earnings docket features just a small handful of big names stepping into the limelight, including Delta Air Lines (DAL) Domino's Pizza (DPZ) and Levi Strauss (LEVI).

Below is a brief list of some key market events and a few high-profile earnings releases scheduled for the upcoming week. All earnings and economic dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.

The week jumpstarts on Monday, October 5 with the non-manufacturing Purchasing Managers' Index (PMI) due out. There are no notable earnings reports on deck.

On Tuesday, October 6, investors will be looking ahead to the U.S. Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS) job openings data, as well as a weekly crude oil update. The U.S. Energy Information Administration (EIA) will also provide a short-term energy outlook. Later that day, LEVI will step into the earnings confessional.

By Wednesday, October 7, the Fed's meeting minutes are set to be released. Crude oil inventory data is due out as well. No earning reports of note are on tap.

The calendar slows down on Thursday, October 8, with only the weekly jobless claims on tap. The earnings docket looks a bit more interesting, with Acuity Brands (AYI), DAL and DPZ se to report earnings.

And finally on Friday, October 9, the United States Department of Agriculture will release its monthly forecast. There are no earnings reports expected that day.

DocuSign, Inc. (NASDAQ:DOCU) is an American software company based out of San Francisco, California. The company’s main focus is to facilitate the process of electronic agreements with its e-signature technology. With a market cap of $39.9 billion, DocuSign is undoubtedly one of -- if not the -- biggest e-signature company on the market. Although Adobe Sign and HelloSign compete in the same space, both are subsidiaries of bigger companies Adobe (ADBE) and Dropbox (DBX). This has allowed DocuSign to take the majority of the market share in the world of e-signature technology.

DOCU just went public in 2018 and DocuSign stock has since grown over 600%, with the majority of its growth occurring in 2020. DocuSign stock is up a massive 191% year-to-date, clearly benefiting from the significant increase in people working from home due to the Covid-19 pandemic. DocuSign stock has also grown 232% since tapping its 52-week low of $64.88. DocuSign stock is down 26% from its 52-week high of $290.23.

DOCU is gearing up to report quarterly earnings tomorrow, where the company will look to push DocuSign stock back up near its recent highs. DOCU has beat expectations on all four of its most recent earnings reports. In the company's fiscal fourth quarter of 2019, DocuSign beat earnings expectations by $0.08. The company reported an earnings per share (EPS) of $0.11. In the first quarter of 2020 for the company, DocuSign increased its EPS to $0.12, beating expectations by a margin of $0.07. The company maintained its $0.12 EPS when reporting for its second quarter earnings of 2020, beating expectations by a margin of $0.02. In its most recent quarter, DOCU beat its earnings target by $0.09 (112.5%) for the third fiscal quarter of 2020. The company reported an EPS of $0.17 instead of the expected EPS of $0.08. For its tomorrow's earnings report on DocuSign's fiscal fourth quarter of 2020, the company is expected to report an EPS of $0.13.

DocuSign has shown incredible growth over the past few years, especially in 2020. The company has more than doubled its revenue since its IPO in 2018, and has nearly tripled revenue since 2017. DocuSign has also improved greatly on its balance sheet over the past couple years when compared to the -$347 million of equity the company had in 2017. DocuSign now holds nearly as much cash as it has in debt marking an incredible turnaround in just three years.

From a fundamentals perspective,  DocuSign's biggest downside for investors has been its inconsistent net income growth. Although it is normal for growth companies to experience years of net losses, investors will be eager to see some improvement on the company's bottom line in tomorrow's report. The future should be bright for DocuSign stock, as long as DOCU can keep growing near its current rate.

 

December kicked off with a strong start with all of the major market indexes finished higher and notching record closes yesterday. Investor sentiment got a boost early in the day yesterday after lawmakers proposed a $908 billion stimulus plan, including $200 billion for Paycheck Protection Program small business loans. Then the news broke that Senate Majority Leader Mitch McConnell rejected the bipartisan package, continuing the stalemate. The Dow Jones Industrial Average (DJI - 29,823.92) gained 185.3 points on the day yesterday. The S&P 500 Index (SPX - 3,662.45) gained 80.2 points and the Nasdaq Composite (IXIC - 12,355.11) was up156.4 points on Tuesday. The Cboe Volatility Index (VIX - 20.77) fell 0.2 point during yesterday's trading session.

Today will be a slower day than the first of the month. Investors will still have the latest ADP employment report to look forward to. The Federal Reserve's "Beige book" is also on tap. There are also a good handful of companies releasing their quarterly earnings reports today including Five Below (FIVE), Splunk (SPLK), Zscaler (ZS), and CrowdStrike (CRWD).

For your convenience, we have rounded up the companies slated to release earnings today, December 2:

Patterson Companies, Inc. (NASDAQ:PDCO -- $27.70) distributes and sells dental and animal health products. Patterson Companies will report its second-quarter earnings of fiscal 2021 before the bell today.

Royal Bank of Canada (NYSE:RY -- $82.66) operates as a diversified financial service company worldwide. Royal Bank of Canada will report its fourth-quarter earnings before the bell today.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD -- $147.50) provides cloud-delivered solutions for next-generation endpoint protection. CrowdStrike will report its third-quarter earnings after the market closes today.

The Descartes Systems Group, Inc. (NASDAQ:DSGX -- $58.48) provides cloud, device, and data content-based solutions. Descartes will report its third-quarter earnings after the market closes today.

Elastic N.V. (NYSE:ESTC -- $120.80) delivers technology that enables users to search through structured and unstructured data. Elastic will report its second-quarter earnings of fiscal 2021 after the market closes today.

Five Below, Inc. (NASDAQ:FIVE -- $162.12) operates as a specialty value retailer in the United States. Five Below will report its third-quarter earnings after the market closes today.

Guess', Inc. (NYSE:GES -- $16.32) designs, markets, distributes, and licenses lifestyle collections of apparel and accessories. Guess’ will report its third-quarter earnings after the market closes today.

Okta, Inc. (NASDAQ:OKTA -- $236.99) provides identity management platforms. Okta will report its third-quarter earnings after the market closes today.

PVH Corp. (NYSE:PVH -- $81.80) operates as an apparel company. PVH will report its third-quarter earnings after the market closes today.

Semtech Corporation (NASDAQ:SMTC -- $67.94) designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. Semtech will report its third-quarter earnings after the market closes today.

Snowflake, Inc. (NYSE:SNOW -- $305.64) provides cloud-based data platform. Snowflake will report its third-quarter earnings of fiscal 2021 after the market closes today.

Splunk, Inc. (NASDAQ:SPLK -- $206.43) develops and markets software solutions that enable organizations to gain real-time operational intelligence. Splunk will report its third-quarter earnings after the market closes today.

Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH -- $14.31) operates as an outdoor sporting goods retailer. Sportsman's Warehouse will report its third-quarter earnings after the market closes today.

Zscaler, Inc. (NASDAQ:ZS -- $151.68) operates as a cloud security company worldwide. Zscaler will report its first-quarter earnings of fiscal 2021 after the market closes today.

Here is a quick recap of how yesterday’s earning calls played out:

Bank of Montreal (NYSE:BMO -- $72.72) provides diversified financial services primarily in North America. Earnings per share decreased 1.62% year over year to $1.82, which beat the estimate of $1.67. Revenue of $4,529,000,000 decreased by 2.10% from the same period last year, which beat the estimate of $4,210,000,000.

The Bank of Nova Scotia (NYSE:BNS -- $48.76) provides various banking products and services. Earnings per share decreased 20.29% year over year to $1.10, which missed the estimate of $1.32. Revenue of $5,674,000,000 decreased by 5.81% from the same period last year, which beat the estimate of $5,460,000,000.

Momo, Inc. (NASDAQ:MOMO -- $14.38) operates a mobile-based social and entertainment platform in the People's Republic of China. Earnings per share fell 36.23% over the past year to $0.44, which beat the estimate of $0.38. Revenue of $554,768,000 declined by 10.92% year over year, which missed the estimate of $563,280,000.

Hewlett Packard Enterprise Company (NYSE:HPE -- $11.04) provides solutions that allow customers to capture, analyze, and act upon data from edge to cloud. Earnings per share fell 24.49% over the past year to $0.37, which beat the estimate of $0.34. Revenue of $7,208,000,000 declined by 0.10% from the same period last year, which beat the estimate of $6,880,000,000.

NetApp, Inc. (NASDAQ:NTAP -- $53.31) provides software, systems, and services to manage and share data on-premises, and private and public clouds. Earnings per share fell 3.67% over the past year to $1.05, which beat the estimate of $0.73. Revenue of $1,416,000,000 up by 3.28% from the same period last year, which beat the estimate of $1,310,000,000.

Veeva Systems, Inc. (NYSE:VEEV -- $276.87) provides cloud-based software for the life sciences industry. Earnings per share were up 30.00% over the past year to $0.78, which beat the estimate of $0.68. Revenue of $377,519,000 rose by 34.39% year over year, which beat the estimate of $361,820,000.

Now, looking ahead to tomorrow, things are set to pick back up with a slew of employment data set to be released. Meanwhile, Markit Services PMI and ISM services index information is due to be released. Plus, a ton of companies will be stepping up to the earnings confessional including DocuSign (DOCU), Marvell (MRVL), Ulta Beauty (ULTA), and Kroger (KR).