Scouting Out Some Earnings Plays

 | Apr 26, 2012 | 10:20 AM EDT  | Comments
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Stock quotes in this article:

deck

,

FIO

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bjri

Today is the biggest earnings day yet for Q1. While we have seen some really good numbers and guidance from the "expected" names, there have been some disappointments as well. Some sectors are really struggling here -- energy, materials and services. Retail has been OK and tech has been rather mixed, while industrials/rails have been some of the best performers.

Below are a few plays I am looking at today.

Deckers (DECK)
Source: StockCharts.com

Deckers (DECK) has been a flat-out disaster lately. The stock has been pummeled since late last year and just cannot get out of its own way. It appears to have made a bottom but I'm not sure how solid it is. Earnings will be a defining moment -- the company is set to report this afternoon -- as we've seen this one move violently. Lots of overhead resistance, but if a bottom is in place then sellers are probably done down here. I'm inclined to play this with a spread or even butterfly.

Fusion-IO (FIO)
Source: StockCharts.com

Fusion-IO (FIO) is a curious one. It's a recent IPO and has come under some pressure with insider selling. This stock is a violent mover on earnings (another one that reports after the bell) but the chart seems to point higher. I am playing this with a vertical call spread, looking for a big outsized move.

BJ's Restaurant (BJRI)
Source: StockCharts.com

Finally, BJ's Restaurant (BJRI) offers some good opportunity. Like DECK, it may have found a bottom, and if so might have an extended move in store, as it did in February. I'm inclined to play this one in both directions via straddle or strangle.

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