Volatility Outlook On Earnings Q2 2023: How Are People Positioning?
Portfolio Pulse from Jason DeLorenzo
Earnings expectations for Q2 2023 are making a slight comeback, with many companies, particularly in tech, seeing upside revisions. However, the strategy of selling calls to hedge earnings reports has been prevalent, leading to clear earnings price targets. This has been observed in the cases of Tesla, Netflix, and General Motors, where despite positive earnings, the price drops after an initial surge due to the 'sold call' hedging method.
July 25, 2023 | 3:26 pm
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NEGATIVE IMPACT
General Motors saw a drop in stock price following an initial surge, despite positive earnings, due to the 'sold call' hedging method.
The 'sold call' hedging method has led to a drop in General Motors' stock price post positive earnings, indicating a potential short-term negative impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Netflix experienced a drop in stock price following an initial surge, despite positive earnings, due to the 'sold call' hedging method.
The 'sold call' hedging method has led to a drop in Netflix's stock price post positive earnings, indicating a potential short-term negative impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Despite positive earnings, Tesla's stock price dropped after an initial surge due to the prevalent 'sold call' hedging method.
The 'sold call' hedging method has led to a drop in Tesla's stock price post positive earnings, indicating a potential short-term negative impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80