The following are the notable earnings for this week:
DKS – earnings report will be released on May 29, before open. Closed at 189.97 last May 24. Consumer confidence is weak and the returned goods will hurt the gross sales figure. I think this will test the support at 150-149 level. I will be looking at 160p / 150p premiums on this one.
OKTA – earnings report will be released on May 29, after market. Closed at 97.16 last May 24. Quarterly revenue slowly improves every report as well as the net income. I think this will try to bounce at its daily VWAP level and could test 110.00 level. I will be checking 105c / 110c. Shares floating is low so any good catalyst can make this stock move more than its average true range.
COST – earnings will be released on May 30, after market. Closed at 809.73 last May 24, posting another new high. This is an overbought stock. All eyes on membership subscription numbers and most importantly the sales returns figure. WMT and TGT are the competitors and we saw what happened to their stock price after their corresponding earnings report. I think this will trade downside due to profit taking. In my opinion, this could test somewhere in the 765.00 to 769.00 level. I will be looking at a 760p / 755p contract premium. I’d like to check Jun07 810/805 Bear Put debit spread on this one as well. If you are holding a stock and want to hedge its downside movement, selling calls can be an alternative too.
ULTA – earnings will be released on May 30, after market. Closed at 381.78 last May May 24. In my opinion, this is bound to bounce. I’d like to see this stock reclaim the 400 level. I will be checking 407c 410c. I was surprised by the recent ELF earnings. I’d like to see the same sentiment on this one.
Other Plays:
NVDA – Still hot due to recent earnings outcome and an announcement of 10 for 1 stock split. Closed at 1064.69 last May 24. I’d would be nice to see 1100.00 get tested before this baby show some breather.
Nothing is guaranteed here. Stocks mentioned above could trade opposite or sideways depending on the earnings outcome.