arrow-left arrow-right brightness-2 chevron-left chevron-right circle-half-full facebook-box facebook loader magnify menu-down rss-box star twitter-box twitter white-balance-sunny window-close
Cloudera, Crowdstrike earnings previews and a way to trade.
2 min read

Cloudera, Crowdstrike earnings previews and a way to trade.

Cloudera, Crowdstrike earnings previews and a way to trade.

Cloud software company Cloudera and cybersecurity company Crowdstrike each report earnings after the close. Here is a preview of both and a potential neutral way to trade in Crowdstrike.

Cloudera

  • Cloudera (CLDR) reports earnings after the close (~4:05pm)
  • Options are pricing in about a +/-16.1% (about $2.15) move by Friday's expiration.
  • Prior earnings (in reverse chronological order) saw actual moves of +0.5%, +8.7%, +14.9% and -40.1%.

The expected move chart via Options Ai technology. 1 month chart, this Friday's expiration highlighted:

Volatility has slightly increased the past few days into the earnings announcement. At the beginning of the week the expected move was less than 14%, it is now 16%.

Crowdstrike

  • Crowdstrike (CRWD) reports earnings after the close (~4:05pm)
  • Options are pricing in about a +/-15.6% (about $21.50) move by Friday's expiration.
  • Prior earnings (in reverse chronological order) saw actual moves of +6.3%, +17.4%, -3.9% and -12.5%.

The expected move chart via Options Ai technology. 1 month chart, this Friday's expiration highlighted:

Volatility has increased a lot in the past few days into the earnings announcement. At the beginning of the week the expected move was about 10%, it is now nearly 16%.

Neutral - Let's look at an Iron Condor isolating the earnings event, expiring this Friday:

And here's a look at that trade, it establishes a breakeven at 114 and 162 in the stock, with profits anywhere in between, and a max gain anywhere in between 116 and 160. It risks $3 to make $2.

Here's a closeup of the spread, 5 dollars wide (each wing) with a 3/2 risk/reward, note the wide bid/ask spread in blue:

It's interesting that the expected move climbed so much into the event, that's likely a result of two things, overall market volatility has climbed a bit this week, and some recent names that have reported have blown out their expected moves, mostly to the upside. But the risk/reward on this trade provides a pretty wide range of max profitability and any big move beyond the already expanded expected move into the event the risk is clearly defined and fair.

Previously:

Actionable Insights from the Options Market

Earnings event expected moves
Unusual activity alerts
Spread trade education

Broker Dealer (FINRA Registered)

Built for one-tap spread trading
No chains. No per contract fees.
Powered by OptionsAI technology (Patent Pending)