Although, we are deep into earnings season, there are still plenty of names to report. And the best part about earnings season? If you don't like this one, simply be patient and another one will be along shortly.
I thought it might be a beneficial study to examine (briefly) a dozen names reporting Thursday night with a quick touch on the weekly chart setup, historical trend (if any), and current pricing expectations of the option's market so that we can follow-up Friday and see how each played out.
Earlier we talked about six of these names, including Roku (ROKU) and Nvidia (NVDA) . Now on to part 2 of technical, history, and earnings, oh my!
GoDaddy (GDDY) : Who's Your Website Domain Daddy?
- Options market pricing: An expected move of 8.3% by the close of trading Feb. 21.
- Technical -- SLIGHTLY BULLISH. Above $74 and bulls can get excited, but we're in a consolidation phase with secondary indicators that aren't exciting. Price has bounced off the 10-week simple moving average several times, so the bulls get the slight nod.
- Historical trend -- MIXED + VOLATILITY. This is one name that offers the least guidance from history. Expect the unexpected.
Expedia (EXPE)
- Options market pricing: An expected move of 7% by the close of trading Friday.
- Technical -- NEUTRAL (at best). The stock is still trying to recover from its last earnings report. The consolidation sets up for a big move with technicals favoring the bulls, but with the stock still under the 21-week simple moving average, it's hard to get overly excited about it.
- Historical trend -- NEUTRAL + VOLATILITY. Go big or go home. The moves are either absolutely huge or very muted versus the expected pricing. It has been green five of the past seven post-earnings days, but red two of the past three.
Arista Networks (ANET)
- Options market pricing: An expected move of 10.2% by the close of trading Friday.
- Technical -- SLIGHTLY BULLISH. The stock really needs to get above $250 to break out, but the bullish crossover of the 10-week simple moving average above the 21-week SMA lends credence to optimism. Trend and momentum also support an upside thesis.
- Historical trend -- BEARISH+ VOLATILITY. Red the past three post-earnings trading days and six of the last eight. Huge volatility nine of the past 10 sessions. The 10% priced move might be too low.
Cloudflare (NET)
- Options market pricing: An expected move of 13.7% by the close of trading Feb. 21.
- Technical -- SQUEEZE. The price action here is consolidating in a tight pennant. A big move could be on the horizon. Trend has been lackluster, but volume and momentum suggest a big move as well. The question is what direction.
- Historical trend -- NO HISTORY YET.
CarGurus (CARG)
- Options market pricing: An expected move of 12% by the close of trading Feb. 21.
- Technical - BEARISH. Price is stuck below the 10-week and 21-week simple moving averages with volume fading. There's a glimmer of hope in the momentum and trend indicators, which are both turning higher.
- Historical trend -- BULLISH + VOLATILITY. Green five of the past seven reports with several huge moves mixed in. Those moves have ranged from 7% to 22%, tilted above the high end of current pricing.
Talend (TLND)
- Options market pricing: An expected move of 16% by the close of trading Feb. 21
- Technical - BEARISH. The stock has struggled under the $42 level. Until it breaks and closes above that level, bears have the advantage. Bulls must hold $35. Momentum, trend, and volume all favor the bears.
- Historical trend -- BULLISH + SCATTERED VOLATILITY. Go big or go home. The moves are either absolutely huge or very muted versus the expected pricing. The stock has opened solid green three of the past four reports.
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