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Roku could see a 15% move on earnings — and that’s unusually small, says trader

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Roku could see a 15% move on earnings – and that’s unusually small, says trader

Roku on Wednesday afternoon releases its third quarterly earnings statement as a public company, and the options market is implying it expects something unique: relatively little.

Stacey Gilbert, head of derivative strategy at Susquehanna, told CNBC's "Trading Nation " that shares of the streaming technology company, which have plunged 36 percent this year, are expected to see a smaller move than in its prior two reports. She explains.

• 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 percent; last quarter it tumbled 18 percent.

• Heading into earnings on Wednesday after the closing bell, the options market's implied move is roughly 15 percent 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.

Bottom line: The options market is implying Roku shares are expected to see a move of around 15 percent in either direction earnings, Gilbert said.