FIVE Option strategy analysis shows that selling out-of-the-money puts the day before earnings had 92% winning occurrences


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FIVE to Release Earnings on June 6

Five Below Inc. (FIVE) is scheduled to release earnings on June 6, 2018, after the market closes, and will hold a conference call at 4:30 PM ET on the same day. The stock currently trades at 71.39, which is 2.0% higher than the close following its last reported earnings, trading with a range of 66.83 to 78.28 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 7.9% move for this earnings, and during the previous earnings release, the stock experienced a +4.2% move. Over the last 12 quarters, the absolute average move has been ± 4.7%, with a minimum move of 0.5% and a maximum move of 10.8%. FIVE has only experienced 2 larger-than-expected earnings moves in the last 12 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected one notable historical trend.

Earnings Opening Gap:For 5 of the last 6 quarters (83%), FIVE stock price has gapped open with significant gains, on average opening up +4.0%.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling out-of-the-money puts the day before earnings had 92% winning occurrences, for an average gain of +64.8%. Additionally, selling at-the-money straddles resulted in 83% winning occurrences, for an average return of +22.1%.

EPS Estimate

Analysts are currently expecting FIVE to report an earnings of $0.33 per share, compared to $0.15 for the same quarter last year. Revenue is expected to come in at $291.6 million versus $232.9 million for the previous year.

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