Options Volatility Signals Market Moves Ahead of Major Earnings Reports
Market participants are bracing for volatility as Analog Devices (ADI), Baidu (BIDU), and Estée Lauder (EL) lead a slate of earnings reports today. Options pricing suggests outsized moves, with Iqiyi (IQ) implied to swing 16.7%—the most among today's reporters.
Retail bellwethers Target (TGT) and Lowe's (LOW) show divergent expectations, with options pricing 9.4% and 3.7% moves respectively. The lithium play SQM faces the second-highest expected volatility at 10.9%, reflecting battery metal market turbulence.
TipRanks data reveals unusually wide bands for Chinese ADRs, with BIDU and FUTU both priced for >5% moves. This comes amid ongoing regulatory scrutiny of offshore-listed Chinese firms.