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Stock Volatility Alert | TSLA(10.4%), INTC(10.3%) And EDU(17.8%): Top Potential Volatility in Options to Watch This Week
Tesla Motors, Inc. -2.47%
Alphabet Inc. Class A +0.63%
Alphabet Inc. Class C +0.62%
Intel Corporation -1.24%
Boeing Company +0.84%
Tesla Motors, Inc. TSLA | 0.00 | |
Alphabet Inc. Class A GOOGL | 0.00 | |
Alphabet Inc. Class C GOOG | 0.00 | |
Intel Corporation INTC | 0.00 | |
Boeing Company BA | 0.00 |
This column is updated every Monday, featuring options volatility data for key earnings stocks in the upcoming week.
Option Volatility And Earnings Report For April 21- April 25
This week is set to be busy with earnings announcements, as more than 120 S&P 500 companies are scheduled to release their financial reports. This will be a test for the stock market, which has been experiencing volatility due to reforms in US trade policies. The earnings season has been off to a good start, with about 72% of the S&P 500 companies that have reported so far exceeding expectations.
Among the earnings to watch this week are those from Tesla Motors, Inc.(TSLA.US) , Alphabet Inc. Class A(GOOGL.US) Alphabet Inc. Class C(GOOG.US) , and Intel Corporation(INTC.US) . Additionally, several other major companies including Boeing Company(BA.US) , International Business Machines Corporation(IBM.US) , Merck & Co., Inc.(MRK.US) , and Procter & Gamble Company(PG.US) will also report their earnings.
Earnings reports often lead to heightened implied volatility in options due to market uncertainty, driving up demand and prices for options. However, implied volatility typically drops back to normal levels after the earnings announcement.
To estimate a stock's expected price range around earnings, traders can use the option chain by adding the prices of the at-the-money put and call options for the first expiry date after the earnings report. While this method provides a rough estimate, it is a useful tool for structuring trades.
Data as of 21/04/2025
| Day | Ticker | Potential Volatility |
|---|---|---|
| Monday | W. R. Berkley Corporation(WRB.US) | 7.9% |
| Medpace Holdings, Inc.(MEDP.US) | 14.7% | |
| Zions Bancorporation(ZION.US) | 12.6% | |
| Tuesday | General Electric Company(GE.US) | 6.4% |
| Lockheed Martin Corporation(LMT.US) | 5.5% | |
| Tesla Motors, Inc.(TSLA.US) | 10.4% | |
| SAP SE Sponsored ADR(SAP.US) | 10.1% | |
| Wednesday | Boeing Company(BA.US) | 6.7% |
| Philip Morris International Inc.(PM.US) | 5.4% | |
| New Oriental Education & Technology Group, Inc. Sponsored ADR(EDU.US) | 17.8% | |
| International Business Machines Corporation(IBM.US) | 7.9% | |
| Thursday | Merck & Co., Inc.(MRK.US) | 6.2% |
| PepsiCo, Inc.(PEP.US) | 3.6% | |
| American Airlines Group, Inc.(AAL.US) | 9.7% | |
| Alphabet Inc. Class C(GOOG.US) | 6.2% | |
| T-Mobile US, Inc.(TMUS.US) | 5.2% | |
| Intel Corporation(INTC.US) | 10.3% | |
| Friday | AbbVie, Inc.(ABBV.US) | 5.4% |
| HCA Holdings, Inc.(HCA.US) | 9.5% | |
| Colgate-Palmolive Company(CL.US) | 3.9% | |
| Schlumberger NV(SLB.US) | 5.3% |
- Bearish traders can consider selling bear call spreads outside the expected range.
- Bullish traders may opt for selling bull put spreads outside the expected range or explore naked puts for higher risk tolerance.
- Neutral traders can utilize iron condors, ensuring the short strikes remain outside the expected range.
When trading options during earnings, it is crucial to use risk-defined strategies and maintain small position sizes. This ensures that even if a trade suffers a full loss due to an unexpected stock move, the impact on the overall portfolio remains limited to 1-3%.
Details on Options Strategies, Follow Here:
Disclaimer: This column is solely for information organization and sharing. All materials and data are sourced from publicly available markets and should not be used as a basis for investment decisions.