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Charles Schwab Options Market Prices 3.8% Post-Earnings Move
Options traders are pricing in a potential 3.8% move in either direction for Charles Schwab Corp. (NYSE: SCHW) stock following its upcoming earnings release, according to options data compiled by Bloomberg. The financial services giant is scheduled to report its results before the market opens on July 21.
This implied volatility figure is derived from the pricing of options contracts and reflects market expectations for the stock's price swing after the new financial data is made public. It is a measure of anticipated magnitude, not a prediction of the direction of the move.
Historical Post-Earnings Performance
An analysis of past performance shows that Charles Schwab's stock has a recent history of making larger moves than the options market had anticipated. The company has exceeded the options-implied move in three of its last eight earnings announcements, according to the report.
AdA review of recent earnings reports highlights this trend:
- April 16: The stock fell 4.2%, slightly less than the 4.4% implied move.
- January 21, 2025: The stock surged 11.4%, significantly outpacing the expected 4.5% move.
- October 15, 2024: Shares jumped 11.9%, nearly double the implied move of 6.5%.
- July 16, 2024: The stock declined 7.9%, a larger drop than the anticipated 4.8% move.
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