AMD Options Implied Volatility Rises to 7.3% Ahead of Earnings; Tech Hardware Stocks Down 13.4% After Results
AMD is scheduled to report earnings after Tuesday's close. Options markets imply a 7.3% post-earnings share-price move, above the 6.4% median of the past eight quarters, while historical data show an average one-month move of about 16.5%; the last two releases produced gains and losses of 18%, respectively. Since July 1, 45 technology hardware and semiconductor companies have reported, and their shares have fallen an average 13.4% over the past month, with 36 lower. The S&P 500 was roughly flat and the Nasdaq 100 fell about 5%, as flows rotated toward defensive and value sectors.
AMD will report earnings after the market close on Tuesday. Historical data show that in the month after an earnings release, AMD shares have moved by an average of about 16.5%, in either direction. The most recent release was followed by an 18% gain, while the one before that was followed by an 18% decline. The options market currently implies a share-price move of 7.3%, above the 6.4% median of the past eight quarters.
Since July 1, 45 technology hardware and semiconductor companies have reported earnings. On average, their shares have fallen 13.4% over the past month, with 36 of the companies trading lower since July 1. Over the same period, the S&P 500 was broadly flat and the Nasdaq 100 fell about 5%. Fund flows show capital rotating out of technology hardware and into defensive and value sectors including healthcare, financials and industrials.