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.
Stacey Gilbert, head of derivative strategy at Susquehanna, is focusing in on three technology names reporting this week: Grubhub, Snap and Spotify. Here's why she's watching.
• 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.