Roku (NASDAQ: ROKU) on Wednesday afternoon releases its third quarterly earnings statement as a public company, and the options market is implying it expects relatively little.
Stacey Gilbert, head of derivative strategy at Susquehanna, told the media shares of the streaming technology company, which have plunged 36% this year, are expected to see a smaller move than in its prior two reports.
Roku earnings, historically have had some notable moves after its earnings. Two quarters ago, on Roku's first quarterly earnings report as a public company, the stock soared 55%; last quarter it tumbled 18%
Heading into earnings on Wednesday after the closing bell, the options market's implied move is roughly 15% in either direction. This double-digit move is still a notable move, though less volatile than the prior two quarters.
The market is suggesting that investors are not expecting to see many surprises. If a surprise does indeed arise, the stock could see an outsized move.
For investors who believe the stock could continue to see earnings volatility similar to past reports, the options are attractive and consistent with that fundamental thesis.
Last month came word that video ads on the Roku OTT platform were 67% more effective per exposure at driving purchase intent than ads on broadcast and cable television, according to a new landmark study conducted by a bevy of different companies, including Applebee’s, H&M, McCormick and Truvia
Shares in Roku began Wednesday up $1.74, or 5.3%, to $34.86
