QCOM to Release Earnings on November 7 option traders are expecting a ± 6.2% move


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Qualcomm Incorporated (QCOM) is scheduled to release earnings on November 7, 2018, after the market closes, and will hold a conference call at 4:45 PM ET on the same day. The stock currently trades at 63.47, which is 0.2% lower than the close following its last reported earnings, trading with a range of 61.18 to 76.50 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 6.2% move for this earnings, and during the previous earnings release, the stock experienced a +7.0% move. Over the last 12 quarters, the absolute average move has been ± 4.6%, with a minimum move of 0.1% and a maximum move of 15.3%. QCOM has experienced 5 larger-than-expected earnings moves in the last 12 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected one notable historical trend.
3 Days Before Earnings:For 5 of the last 6 quarters (83%), QCOM stock price has gone down in the 3 days before earnings. It has had an average loss of -0.8% during that span.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling out-of-the-money puts the day before earnings had 73% winning occurrences, for an average gain of +45.4%. Additionally, selling at-the-money straddles resulted in 55% winning occurrences, for an average return of +18.1%.

EPS Estimate

Analysts are currently expecting QCOM to report an earnings of $0.82 per share, compared to $0.92 for the same quarter last year. Revenue is expected to come in at $5.5 billion versus $6.0 billion for the previous year.

 


 

 


 

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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.

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