Next Week in Weeklys – 2/23/2014

I guess earnings season never comes to an end as there are twenty-eight stock that have short dated options available reporting earnings next week.  As a review – the table below is based on twelve quarters (when available) of earnings price reactions for stocks with options expiring this coming Friday.  If the history is less than 12 quarters the ticker and data are italicized.   Do note that Target (TGT – 56.24) reports on Wednesday morning.  There was a write up in The Striking Price column in Barron’s where Goldman Sachs believes this could be a particularly volatile earnings report.  I discussed that a little more in the previous Weekend Review blog.  I’m planning on following up on Tuesday (the day before earnings) with what the options seem to be pricing in.

Earnings

I try to keep an eye out for big trades in Weeklys and I did come across one on Friday.  It appears someone bought over 12,000 short dated puts on Williams Companies (WMB – 42.06).  Specifically they purchase the WMB Feb 28th 41.50 Puts for 0.43.  They are looking for WMB to be below 41.07 by Friday so that may be a stock to watch.