FFIV Calls Pop Ahead of Earnings Report

The stock tends to move higher the day after earnings

Digital Content Manager
Jan 24, 2020 at 1:18 PM
facebook X logo linkedin

With earnings just around the corner software developer F5 Networks, Inc. (NASDAQ:FFIV) is gaining some traction today, with a little help from long-term support at the $132 region. The firm is expected to post its fiscal first-quarter earnings after the close on Monday, Jan. 27, and at last check the stock is up 0.9% to trade at $135.20. 

Options bulls have been flocking to the networking concern ahead of its big quarterly event. While overall volume is still light, the 844 calls that have crossed the tape so far double the intraday average. Positions are being opened at the weekly 1/31 136-strike and 134-strike calls, while the weekly 1/24 134-strike call is also quite popular. 

This bullishness is unsurprising, considering FFIV tends to do well the day after earnings. Looking back at its last eight reports, the majority of its post-earnings moves were positive, including a next-day jump of 5.5% during its last report, and a 6.1% pop a year prior. During these past two years, the security has averaged a next-day move of 2.8%, regardless of direction. This time around, the options pits are pricing in a swing of 6.3%. 

A tendency toward bullish bets is the norm for 5F, too. During the past 10 days 2.49 calls have been bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 79% of all other readings for the past year, suggesting a bigger-than-usual appetite for long calls of late. 

A shift in sentiment could give the shares an extra boost after earnings. Currently, nine in coverage consider FFIV a "hold" or worse, while only four call it a "buy."

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI