HELE Earnings Beats Estimates for July 9
Helen Of Troy (HELE) just reported earnings on July 9, 2018, before the market opened. Earnings Per Share (EPS) was reported at $1.87, after analysts had expected $1.43 per share. As a result, HELE opened up +13.0%, and closed for the day up +12.7% at 114.85. Since earnings was reported, the stock has traded in a range from 112.85 to 119.25.
Price Volatility Against Expectations
Ahead of earnings, option traders were expecting a ± 7.1% move for this date, so the earnings move of +12.7% represents an outsized move against the market. HELE has only experienced 3 other larger-than-expected earnings moves in the last 12 quarters.
Earnings Option Strategies
MarketChameleon's option strategy analysis
shows that selling at-the-money puts one day after earnings and buying them back one week after earnings had 91%
winning occurrences, for an average gain of +58.1%
. Additionally, selling at-the-money straddles resulted in 78%
winning occurrences, for an average return of +12.8%
Stock and option trading involves risk may not be suitable for all investors. Examples contained within this newsletter are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This newsletter is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither MarketChameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades.
Note: selling options can result in losses of greater than 100%. Average returns from selling options is calculated based on net change in value against the initial theoretical option value. Prior to buying or selling an option, you should read the Options Clearing Corporation's Characteristics and Risks of Options