Earnings on Deck: JPMorgan Chase & Co., Wells Fargo & Co, and Bank of America Corp

JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), and Bank of America Corp (NYSE:BAC) are slated to report earnings this week

by Karee Venema

Published on Jul 13, 2015 at 11:00 AM

Second-quarter earnings season unofficially got underway last week when aluminum giant Alcoa Inc (NYSE:AA) took its turn in the limelight. This week, financial firms will be in focus, with a number of notable names -- including JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), and Bank of America Corp (NYSE:BAC) -- stepping up to the mic. Here's a closer look at BAC, JPM, and WFC ahead of their respective results.

  • JPM is slated to unveil its quarterly report bright and early tomorrow morning. Ahead of the big event, the stock is up 1.4% at $67.97 -- thanks to well-received bailout news from Greece -- extending its year-over-year lead to 21%. Unlike Oppenheimer, option traders have been growing optimistic ahead of earnings, per JPM's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.57, which ranks in the 76th annual percentile. Looking back over the past eight quarters, JPMorgan Chase & Co. has averaged a single-session post-earnings move of 1.6%, and this time around, the options market is pricing in a bigger 2.5% swing -- based on the security's near-term at-the-money (ATM) straddle.

  • WFC will also report tomorrow morning, and the stock's near-term ATM straddle is calling for a 2.1% post-earnings move -- more than the 1% the security has averaged over the past eight quarters. On the charts, WFC has added 12.3% since hitting a year-to-date low of $50.42 in mid-January. What's more, the stock tagged a record high in late June, but was more recently seen lingering near $56.63. Option traders have been rolling the dice on a post-earnings dip, though, buying to open puts over calls at an accelerated pace in recent weeks. Specifically, Wells Fargo & Co's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.73 rests in the 62nd percentile of its annual range.

  • BAC is slated to step into the earnings spotlight Wednesday morning, and the stock's near-term options are pricing in lofty volatility expectations in the lead-up to the big event. Specifically, the security's 30-day ATM implied volatility of 23.2% currently ranks in the 77th percentile of its annual range. Meanwhile, over the past eight quarters, Bank of America Corp has averaged a 2.7% swing in the session subsequent to reporting -- slightly less than the 3% move the options market is expecting this time around (per BAC's short-term ATM straddle). In the options pits, long calls have been popular in recent weeks -- BAC's 10-day ISE/CBOE/PHLX call/put volume ratio of 4.63 ranks in the 66th annual percentile. Analysts have been upbeat, too, with 59% deeming the security a "buy" or better. Today, the stock is up 1.5% at $16.96, paring its year-to-date deficit to 5.2%.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
Silver Lining for Struggling Ulta Beauty Stock
Historically, ULTA is one of the best stocks to own in the second quarter
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.