Optionable Earnings Reports
The most volatile of earnings weeks is upon us, with today specifically having what I’d argue to be the most impact. I peruse earnings calendars each week to look for opportunities in the options market. To find opportunities, I specifically look at Earnings Whispers combined with my custom tools in ThinkorSwim. With a combination of calendars, scans, and my earnings stats tool, The Hot Zone, I come up with a list of the top tickers I’m watching.
Check out the calendar that I’ve created below:
#Earnings in the week ahead:
4/25: $MMM $PEP $KMB $HAL $PHM $UPS $SPOT $MCD$V $ENPH $GOOGL #MSFT $CMG $TXN
4/26: $BA $GD $ALGN $ORLY $TDOC $META $WM $EBAY $NOW
4/27: $CAT $NOC $TSCO $LUV $HSY $MA $DPZ $HON $AMZN $PINS $FSLR $MDLZ $NET $SNAP
4/28: $CVX $XOM… pic.twitter.com/dwVRCxVOAt
— Danielle Shay (@traderDanielle) April 24, 2023
These tickers can end up on this list because they fit one or more of the following:
- They are top-weighted companies in a top-weighted market sector
- They are the leaders in their field
- Their impact can be market moving
- They trade in the options market
- They have a potentially bullish, bearish, or neutral trade setup for the earnings report
- They have a statistical pattern post-earnings
- I’m interested in how their executive framing and notes will shine a light on a specific sector or area of the market
FAANG, otherwise known as Facebook, Apple, Amazon, Neflix, and Google, is a bit outdated, but it’s still the term many of us use. These are the top technology stocks moving markets. In this, I would also include Microsoft and Tesla. Microsoft didn’t use to get as much attention, because it was just a slow and steady grower in the background. While NFLX, AMZN, and META, were making big moves, MSFT would just creep along. Which, by the way, is great for investors.
In any case, the week that many of these companies report at the same time is historically incredibly volatile. This is especially the case when they aren’t expected to do well and are expected to demonstrate slowing momentum, like this quarter.
However, even though that is the case, the Nasdaq has held up incredibly well. It’s been resilient and is consolidating on multiple timeframes. It’s just waiting for a reason to break out. Will earnings be the reason? Is this going to be the catalyst?
Sometimes, when we are in a situation like now, where expectations are low, it can open the door to a surprise upside move.
Microsoft: In Focus
Microsoft, I’d argue, is the most likely to do well this week (out of the major tech tickers listed above, AMZN, GOOGL, and META). It’s also one of my favorite long-term stock holdings. While it’s shown a bit of volatility as of late, plus some recent down moves related to earnings, the patterns and stats remain for a potential bullish move post-earnings.
Check out my complete analysis in the video below:
One more thing I’d like to point out? The intraday put/call ratio continues to climb, and currently, it’s at .94, which means the market is a bit lopsided with more shorts than longs. This is an excellent sign for bulls. It means that people are nervous before earnings, and if there is any surprise upside move, those short sellers will have to buy to cover, pushing prices up.
P.S. Want to run your own earnings analysis in ThinkorSwim? Check out my Hot Zone by clicking on the image below.