Applied Materials Options Signal 6% Post-Earnings Move

Key Takeaways

Options market data indicates a potential 6% stock price movement for Applied Materials Inc., ticker AMAT, following its earnings announcement scheduled for May 14 after the market closes. This forecast is based on Bloomberg options pricing data.

Historical Performance vs. Expectations

Applied Materials has a history of outperforming options-implied moves, doing so in six of its last eight earnings announcements. For instance, in February, its shares jumped 19.3%, far exceeding the priced-in 7.4% move. However, the stock has also seen larger-than-expected declines, such as in August and November of the previous year.

Current Volatility Outlook

The anticipated 6% volatility level is consistent with pricing seen in recent quarters. This suggests traders are not expecting an unusual level of turbulence compared to past earnings reports. The smallest recent swing occurred in May 2023, when shares moved only 2.3% against a 5.9% implied move.

Conclusion

While the market is pricing in a moderate 6% move for AMAT stock, the company's track record points toward a tendency for actual price swings to exceed these expectations. Investors will be closely watching the results and guidance provided in the May 14 report.

FAQ

• Q: What is the expected stock move for Applied Materials after earnings?
• A: The options market implies a 6% move in either direction.
• Q: When will Applied Materials release its earnings report?
• A: The report is scheduled for May 14, after the market closes.

Source: Investing.com