Earnings season is winding down and only one of the fifty stocks we follow report this week. Target (TGT) is scheduled to report Wednesday May 21 before the market open. TGT’s last twelve reactions and at-the-money (ATM) straddle pricing before and after earnings appear on the table below. More information showing each of the last twelve reactions and straddle pricing appears in graphics following the summary table.
There are a couple of factors that may result in TGT’s straddle being priced below the average move of +/-10.04%. First, last quarter the stock dropped 3.00%, much less than the average move. Second, Wal-Mart (WMT) reported last week and the reaction was a loss of only 0.50%.