As earnings season kicks into high gear, some of the stocks expected to see the biggest moves on their earnings reports may fall on footwear and a beleaguered Dow stock.
The options market is pricing in notable moves for Skechers and General Electric, said Stacey Gilbert, head of derivative strategy at Susquehanna. She told CNBC’s “Trading Nation” she is watching these two names specifically in the days ahead. Here are her reasons why.
• Shares of footwear manufacturer Skechers is expected to see moves in either direction of around 11 percent on earnings. This would make it one of the larger implied moves heading into earnings this week, though nothing out of the range the market has seen historically. Skechers reports Thursday after the market closes. The stock is up 12 percent in 2018 and is trading near its highest level since October 2015.
• General Electric is also expected to see a notable move of 5 percent on earnings, which is coming Friday before the bell. The stock, which is the Dow’s worst-performer on an annual and year-to-date basis, typically sees a move of around 2 percent around earnings.
• The options market is suggesting General Electric could see a larger move on this upcoming report than it has in any of the last eight quarters. GE, which posted a historically negative year in 2017, said last week it will restate its earnings results from both 2016 and 2017.
Bottom line: The market is suggesting shares of Skechers and General Electric will see notable moves on their respective earnings reports.
Disclosure: Gilbert has household ownership of General Electric stock.