Earnings season is in full swing, with a little over half of S&P 500 companies having reported quarterly earnings, and the options market is implying meaningful moves for several stocks this week.
• Grubhub, scheduled to report earnings Tuesday before the market opens, is set to see a swing of around 11 percent in either direction. This is a smaller move than it’s had from past reports, suggesting the market is not pricing in as much risk as in prior quarters. The sentiment, meanwhile, is a bit more cautious this quarter. Last quarter, the shares surged a whopping 27 percent on the heels of its earnings report.
• Snapchat parent Snap is expected to see a move of roughly 15 percent on its report Tuesday after the market closes. This is, too, a smaller move than the stock has seen in reports past. Some investors are buying protective put options ahead of earnings; the stock has fallen nearly 2 percent this year.
• Spotify, shares of which debuted in early April on the New York Stock Exchange, is set to report earnings Wednesday after the market closes. The stock is expected to move about 8 percent after its first earnings report after going public.
Bottom line: Shares of Grubhub, Snap and Spotify are expected to see relatively significant moves on earnings this week.