Earnings Preview: FedEx Corporation, Jabil Circuit, Inc., and Silver Wheaton Corp.

Analyzing recent option activity on FedEx Corporation (FDX), Jabil Circuit, Inc. (JBL), and Silver Wheaton Corp. (USA) (SLW)

by Griffin Kruse

Published on Mar 17, 2015 at 12:34 PM
Updated on Apr 20, 2015 at 5:32 PM

Among the stocks gearing up to report earnings tomorrow are package delivery expert FedEx Corporation (NYSE:FDX), semiconductor concern Jabil Circuit, Inc. (NYSE:JBL), and precious metals producer Silver Wheaton Corp. (USA) (NYSE:SLW). Below, we'll break down how options traders are positioning themselves, and how much speculators are willing to pay for their bets on FDX, JBL, and SLW.

  • Shares of FedEx Corporation have advanced 28.4% over the past 12 months, and the stock is up 0.4% today at $177.97. Accordingly, bullish sentiment in the options pits is nearing fever pitch, as FDX's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.01 stands just 2 percentage points away from an annual peak. Meanwhile, in the session immediately following its last four earnings reports, FDX has gained an average of 1.4%, including a 6.2% gain in June. Near-term options are available for historically average prices, as the stock's Schaeffer's Volatility Index (SVI) of 23% sits in the 56th percentile of all similar readings taken over the past year.

  • JBL has been a technical outperformer, with the shares advancing 22.7% year-over-year to hit $22.57, including a 1.6% gain today. Accordingly, calls have been popular in the options pits, as Jabil Circuit, Inc.'s 50-day ISE/CBOE/PHLX call/put volume ratio of 10.76 is in the 97th annual percentile. However, in the session immediately following its last six earnings reports, JBL has shed an average of 4.7%. Traders are paying relatively modest prices for their short-term bets on the stock, as its SVI of 32% sits in the 41st percentile of its annual range.

  • On the other hand, SLW has been a technical laggard, with the shares down 28.4% year-over-year to reach $18.50. Puts have been prominent in the options pits, as Silver Wheaton Corp.'s Schaeffer's put/call open interest ratio (SOIR) of 0.79 sits in the 82nd percentile of its annual range. Traders hoping for a post-earnings drop have history on their side -- in the session immediately following its last four earnings reports, SLW has lost an average of 1.1%, including a 5% fall in August. Short-term options are available for middling prices, as the stock's SVI of 39% sits in the 47th percentile of its annual range.

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