Roku on Wednesday afternoon put outs its third quarterly earnings statement as a public company, and the options shop is implying it expects something unique: relatively little.
Stacey Gilbert, precede of derivative strategy at Susquehanna, told CNBC’s “Trading Nation” that apportions of the streaming technology company, which have plunged 36 percent this year, are expected to see a smaller make off than in its prior two reports. She explains.
• Roku earnings, historically partake of had some notable moves after its earnings. Two quarters ago, on Roku’s ahead quarterly earnings report as a public company, the stock soared 55 percent; termination quarter it tumbled 18 percent.
• Heading into earnings on Wednesday after the padlock bell, the options market’s implied move is roughly 15 percent in either governing. This double-digit move is still a notable move, though trivial volatile than the prior two quarters.
• The market is suggesting that investors are not in a family way to see many surprises. If a surprise does indeed arise, the stock could see an outsized on the run.
• For investors who believe the stock could continue to see earnings volatility comparable to past reports, the options are attractive and consistent with that law thesis.
Bottom line: The options market is implying Roku slices are expected to see a move of around 15 percent in either direction earnings, Gilbert bring to light.