Cboe Global Markets Inc. (CBOE) just reported earnings on February 8, 2019, before the market opened. Earnings Per Share (EPS) was reported at $1.54, after analysts had expected $1.37 per share. Despite the results, CBOE opened down -2.4%, and closed for the day down -0.4% at 94.65. Since earnings was reported, the stock has traded in a range from 92.20 to 97.00.
Price Volatility Against Expectations
Ahead of earnings, option traders were expecting a ± 2.7% move for this date, so the earnings move of -0.4%represents an undersized move against the market. CBOE has only experienced 1 larger-than-expected earnings move in the last 12 quarters.
Earnings Price Patterns
2 Weeks After Earnings:For 9 of the last 12 quarters (75%), CBOE stock price has gone up in the 2 weeks following earnings. It has had an average gain of +1.6% during that span.
Earnings Option Strategies
MarketChameleon's option strategy analysis
shows that selling one day after earnings and buying them back one week after earnings had 80%
winning occurrences, for an average gain of +77.0%
. Additionally, selling at-the-money straddles resulted in 67%
winning occurrences, for an average return of +9.9%