Vera Bradley Inc. (VRA) Scheduled to Release Earnings before the Bell Tomorrow

Vera Bradley Inc. (VRA) is a designer, producer, marketer, and retailer of functional accessories for women. The stock is currently trading around $13.87 at the middle of its 52 week range of $13.15-$27.17. The stock has been underperforming the market this year falling by 31.84% year to date. VRA is scheduled to report earnings before the bell tomorrow morning, and the stock is higher on the session by around $0.64 or 4.83% ahead of the close.

Over the past 12 quarters VRA has rallied on earnings day 3 times with an average move of 7.65%. VRA appears bearish on a chart going into the release having traded under the Ichimoku Cloud for a few months. Over the past 12 quarters VRA has rallied from earnings to the nearest options expiration 5 times with an average move of 6.46%. The stock looks as if it could continue its trend of trading lower especially in today’s session. The Ichimoku Cloud has grown to a large size indicating a strong bearish trend that will be hard to reverse. Investors are mainly looking to see the strong currency head wings will affect sales and in turn affect Earnings per Share. Vera Bradley Inc. is expected to report a decline in earnings that has been the common trend with the company.

The options market is currently implying a move of around $1.35 or 9.70% in VRA by this Friday’s close giving us targets of $12.51 and $15.20.

Weibo Corp. (WB) Unusual Options Activity Leads to a Lucrative Trade

Weibo Corp. (WB) is a social media platform for people to create, distribute and discover Chinese-language content. WB is trading at $17.12 around the middle of its 52 week range of $12.11-$26.08. Year to date the stock has outperformed the market rallying 20.75%. The stock ripped up today by about 8.08% or $1.28.

Early in the session a trader bought 2,500 of the WB June 18.0 Calls for $0.45 when the stock was trading at $16.95. This order was recorded about an hour and a half after the open on OptionHacker, and the stock rose about $0.17 to $17.12 after the trade hit the tape. Over 5,300 contracts have been traded today hinting at bullish sentiment. The WB June 18.0 Calls for $0.45 have traded as high as $1.25 today making this a profitable trade. This stock has been trading above and below the Ichimoku Cloud for a few weeks now. The Ichimoku Cloud continually switches between bullish and bearish clouds indicating varying trends. The cloud remains thin meaning there is not a prevalent trend in the graph of WB.

Trade: A trader bought 2,500 of the WB June 18.0 Calls for $0.45
Risk: $45 per 1 lot
Breakeven: $18.45

If a trader bought a 20 lot of these Calls they would have profited $1,600 at the highs on $900 in risk. This is a great example of profitable UOA.

Dollar General Corp. (DG) Releases Earnings Tomorrow before the Bell

Dollar General’s Corp. (DG) is a prominent discounted retailer focusing on serving low-middle and fixed income consumers. The stock is currently trading around $72.47 at the upper end of its 52 week range of $53.00-$76.99. The stock has been performing in line with the market this year rallying 2.69% year to date. DG is scheduled to report earnings before the bell tomorrow, and the stock is lower on the session by around $0.12 or 0.17% ahead of the close.

Over the past 12 quarters DG has rallied on earnings day 7 times with an average move of 3.68%. DG appears bearish on a chart going into the release having traded under the Ichimoku Cloud for a few days. Over the past 12 quarters DG has rallied from earnings to the nearest options expiration 9 times with an average move of 4.75%. The stock looks as if it could continue its trend and lower in today’s session. The cloud appears to be consistently changing its trend. Investors are mainly looking to see how gas prices will affect the disposable income of the low-income consumers. Other points to watch for are how they fair against the discounted retailer giant, Walmart, who increased their minimum wage which is expected to decrease profit margin.

The options market is currently implying a move of around $2.9 or 4.00% in DG by this Friday’s close giving us targets of $69.57 and $75.37.

Medtronic Inc. (MDT) Earnings Preview

Medtronic Inc. (MDT) is a medical technology, service and solutions company offering products to hospitals, physicians, clinicians, and patients in over 160 countries. The stock is currently trading around $76.44 at the upper end of its 52 week range of $58.32-$79.50. The stock has been outperforming the market this year rallying 6.16% year to date. MDT is scheduled to report earnings before the bell tomorrow, and the stock is higher on the session today ahead of the release by around $0.12 or 0.16% ahead of the closing.

Over the past 12 quarters MDT has rallied on earnings day 5 times with an average move of 2.58%. MDT appears bearish on a chart going into the release. Over the past 12 quarters MDT has rallied from earnings to the nearest options expiration 8 times with an average move of 2.33%. The cloud appears to be consistently changing its trend. Investors are mainly looking to see how the formation of a new groups within MDT targeting various illnesses being spread across Asia Pacific, the Americas, Europe, the Middle East, Africa, and China perform this quarter. Another point to watch for is how the strong USD will affect sales.

The options market is currently implying a move of around $2.00 or 2.62% in MDT by this Friday’s close giving us targets of $74.44 and $78.44.

Eli Lilly and Co. (LLY) Unusual Options Activity Reaps Profits

Eli Lilly and Co. (LLY) develops, manufactures, and sells products in two business segments; human pharmaceutical products and animal health products. LLY is trading at $78.19 around the upper end of its 52 week range of $58.50-$79.55. Year to date the stock has outperformed the market rallying,13.73%. The stock ripped up today by about 2.33% or $1.78.

Early in the session a trader bought 3,100 of the LLY June 80.0 Calls for $0.38 when the stock was trading at $77.81. This order was recorded about an hour after the open on OptionHacker, and the stock rose about $1.78 to $79.97 after the trade hit the tape. Over 9,900 contracts have been traded today hinting at bullish sentiment. The LLY June 80.0 Calls for $0.38 have traded as high as $1.15 today making this a profitable trade. This trader is most likely establishing a long position expecting the stock to continue its bullish trend for a few weeks. This stock has been trading above the Ichimoku Cloud for a few weeks now. The Ichimoku Cloud continues to grow and points the technical analysis in the direction of a bullish trend due to an increasing cloud size indicating a hard to reverse trend.

Trade: A trader bought 3,100 of the LLY June 80.0 Calls for $0.38
Risk: $38 per 1 lot
Breakeven: $78.57

If a trader bought a 20 lot of these puts they would have profited $1,540 at the highs on $760 in risk. This is a great example of profitable UOA.

Unusual Options Activity in ITT Educational Services, Inc. (ESI) Yields Incredible Profits

ITT Educational Services Inc. (ESI) is a provider of postsecondary degree programs in the United States to approximately 55,000 students. ESI is trading at $4.44 around the lower end of its 52 week range of $1.93-$18.83. Year to date the stock has severely underperformed the market this year, falling 53.69%. The stock ripped higher today by about 84.65% or $2.04 during the trading session.

Early on a trader bought 2,309 of the ESI June 3.0 Calls for $0.45 when the stock was trading at $2.60. This order was recorded about an hour after the open on OptionHacker, and the stock rose about $2.00 to $4.60 after the trade hit the tape. Over 2,700 of these June 3.0 Calls have been traded today hinting at bullish sentiment. The ESI June 3.0 Calls have traded as high as $1.65 today making this a very profitable trade. This stock has been trading below the Ichimoku Cloud for a few weeks now until it ripped to the upside in today’s session and continued to trade above the Ichimoku Cloud.

Trade: A trader bought 2,309 of the ESI June 3.0 Calls for $0.45
Risk: $45 per 1 lot
Breakeven: $4.89

If a trader bought a 20 lot of these puts they would have profited $2,400 at the highs on $900 in risk. This is a great example of profitable UOA.

Next Week’s (Week of June 1st) Market Preview

The first week of June will kick off on Monday with Personal Income and Outlays for April followed by a report of the Purchasing Managers’ Manufacturing Index (PMIs) which provides insight into a select number of companies in the private sector of the economy. Following this release is the ISM manufacturing composite index presenting the general direction of production, new orders, order backlogs, their own inventories, customer inventories, employment, supplier deliveries, exports, imports, and prices. The last report to listen to on Monday is the Construction Spending on residential, non-residential, and public projects. Trends in the construction data most likely carry valuable clues for the stocks of home builders and large-scale construction contractors.

On Tuesday, only one report will be released. The major event to look for is Factory Orders for both durable and non-durable goods. This report most likely correlates with economic growth because that translates to higher corporate profits.

Wednesday has a few more releases to watch out for such as the ADP Employment Report which represents 400,000 U.S. business clients and approximately 23 million U.S. employees working in all private industrial sectors. Next is the International Trade release which breaks down the export, import and trade balances. Many traders will most likely be watching this to see how the strong USD has affected international trade. Three more releases later on Wednesday include the ISM Non-Mfg Index representing more than 375 firms from various sectors across the U.S. The next release will be the Energy Information Administration (EIA) Petroleum Status Report indicating weekly information on petroleum inventories in the U.S. whether extracted here or abroad. Last to be reported will be the Beige Book which is utilized in the Federal Open Market Committee monetary policy meetings and is a compiled list of economic data from the 12 Federal Reserve Districts.

Thursday has only a few reports to be released at the opening bell. First will be the Jobless Claims numbers enlightening the public on unemployment claims over the past week. Following this report is the Productivity and Costs Report which measures the growth of labor efficiency in producing economy’s goods and services which is most likely used as an indicator of future inflationary trends.

The last day of the trading week, Friday, will be releasing one report, but a very detailed one. The Employment Situation will be released and closely watched especially for wage growth, a key metric the Fed has been citing recently.

Key Earnings Reports Next Week

  • After the Bell on Tuesday | Dollar General Corportation (DG)
  • Before the Open on Wednesday | Vera Bradley, Inc. (VRA)
  • After the Bell on Wednesday | Five Below, Inc. (FIVE)
  • Before the Bell on Thursday | J.M. Smucker Co. (SJM)
  • After the Bell on Thursday | Zumiez Inc. (ZUMZ)

Splunk, Inc.’s (SPLK) Earnings Preview, Earnings Out After the Closing Bell

Splunk, Inc. (SPLK) provides software products for users to manipulate and analyze data regardless of format or source. The stock is currently trading around $69.85 at the upper end of its 52 week range of $39.35-$74.88. The stock has been outperforming the market this year rallying 17.95% year to date. SPLK is scheduled to report earnings after the bell today, and the stock is ripping up ahead of the release. SPLK is higher on the session by around $0.19 or 0.51% ahead of the closing.

Over the past 12 quarters SPLK has rallied on earnings day 8 times with an average move of 9.57%. SPLK appears bullish on a chart going into the release approaching its high of the past 20 trading days of $70.97. Over the past 12 quarters SPLK has rallied from earnings to the nearest options expiration 8 times with an average move of 9.38%. The stock looks as if it could continue its trend and rip to the upside in today’s session. The cloud appears to be consistently changing its trend. Investors are mainly looking to see if Splunk will turn a profit for the first time since its IPO in 2012. Other points to watch for are how the rollout of Splunk light fared in the recent quarter, and how the customer base increase of 7% will affect earnings.

The options market is currently implying a move of around $5.5 or 7.91% in SPLK by this Friday’s close giving us targets of $74.35 and $64.35.

Earnings Preview: Deckers Outdoor Corp. (DECK)

Deckers Outdoor Corp. (DECK) designs footwear, apparel and accessories for high performance activities and everyday casual lifestyle use. The stock is currently trading around $73.39 at the lower end of its 52 week range of $66.65-$99.88. The stock has been underperforming the market this year selling off 19.66% year to date. DECK is scheduled to report earnings after the bell today, and the stock is on the rise ahead of the release. DECK is higher on the session by around $1.72 or 2.32% ahead of the closing bell.

Over the past 12 quarters DECK has rallied on earnings day 5 times with an average move of 12.98%. DECK appears bearish on a chart going into the release having hit its 20-day low yesterday. Over the past 12 quarters DECK has rallied from earnings to the nearest options expiration 5 times with an average move of 14.21%. The Ichimoku Cloud appears to be consistently changing its trend. Investors are looking to see how foreign exchange has affected revenue as well as if there is a decrease or increase in wholesale order cancellations. Another point to focus on is the increase or decrease of reliance on UGG brand to drive profits. UGG products have been a catalyst for profits in the past and investors look for an increase or decrease in sales.

The options market is currently implying a move of around $6.7 or 9.13% in DECK by this Friday’s close giving us targets of $66.69 and $80.09.

What to Look for in Game Stop, Corp. (GME) Earnings After the Bell

Game Stop, Corp. (GME) is one of the biggest video game and consumer electronics retailers. The stock is currently trading around $40.04 around the middle of its 52 week range of $31.69-$46.59. The stock has been outperforming the market this year rallying 17.90% year to date. GME is scheduled to report earnings after the bell today, and the stock is rallying ahead of the release. GME is higher on the session by around $0.60 or 1.52% ahead of the closing bell.

Over the past 12 quarters GME has rallied on earnings day 7 times with an average move of 7.71%. Over the past 12 quarters GME has rallied from earnings to the nearest options expiration 7 times with an average move of 8.64%. The cloud seems flat going forward, not indicating conviction in either direction. Investors are looking to see how the closure of stores and foreign exchange headwinds will affect EPS. Other points to watch for are sales of previous generation consoles and the lack of new games being released lowering sales. In the previous quarter the release of new games such as Mortal Kombat drove sales, but investors wait to see how GME will be effected with no new game releases this quarter.

The options market is currently implying a move of around $2.5 or 6.25% in GME by this Friday’s close giving us an upside target around $42.50.