Keep an Eye on all the Bank Earnings, BAC to Release Earnings on October 15

Share on Facebook
Share on Google+
Share on LinkedIn

Bank Of America (BAC) is scheduled to release earnings on October 15, 2018, before the market opens, and will hold a conference call at 8:30 AM ET on the same day. The stock currently trades at 28.49, which is 4.3% lower than the close following its last reported earnings, trading with a range of 28.26 to 31.91 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 4.8% move for this earnings, and during the previous earnings release, the stock experienced a +4.3% move. Over the last 12 quarters, the absolute average move has been ± 1.3%, with a minimum move of 0.2% and a maximum move of 4.3%. BAC has only experienced 1 larger-than-expected earnings move in the last 12 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected two notable historical trends.
1 Week After Earnings:For 10 of the last 12 quarters (83%), BAC stock price has gone up in the week following earnings. It has had an average gain of +2.2% during that span.
1 Day After Earnings:For each of the last 6 quarters, the stock price has gone up on the day following earnings. Over that period, it has an average gain of +0.7%.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling out-of-the-money puts the day before earnings had 100% winning occurrences, for an average gain of +80.4%. Additionally, selling at-the-money straddles resulted in 83% winning occurrences, for an average return of +30.5%.

EPS Estimate

Analysts are currently expecting BAC to report an earnings of $0.63 per share, compared to $0.48 for the same quarter last year. Revenue is expected to come in at $22.9 billion versus $22.1 billion for the previous year.




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 Option