Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Here we present a list of nine companies that are releasing earnings reports next week. These companies have also seen significant decreases in their put/call ratios over the last 10 trading days (i.e. a rising number of open call option positions relative to put option positions).

Do you think these companies will be announcing earnings surprises? Read below, using this list as a starting-off point for your own analysis.

[Click to enlarge]

List sorted by decrease in put/call ratio.

1. iGATE Corporation (NASDAQ:IGTE): Information Technology Services Industry. Market cap of $1.06B. Earnings to be released on 4/11/11. Put/call ratio has decreased 57.14% over the last two weeks (from 0.84 to 0.36). The stock has gained 87.18% over the last year.

2. IntraLinks Holdings, Inc. (NYSE:IL): Security Software & Services Industry. Market cap of $1.43B. Earnings to be released on 4/11/11. Put/call ratio has decreased 49.88% over the last two weeks (from 4.01 to 2.01). It's been a rough couple of days for the stock, losing 5.54% over the last week.

3. Prosperity Bancshares Inc. (PRSP): Regional Bank. Market cap of $2.01B. Earnings to be released on 4/14/11. Put/call ratio has decreased 35.37% over the last two weeks (from 0.82 to 0.53). PRSP has a relatively low correlation to the market (beta = 0.65), which may be appealing to risk-averse investors. The stock is a short squeeze candidate, with a short float at 9.66% (equivalent to 17.12 days of average volume). PRSP has gained 5.91% over the last year.

4. Fastenal Co. (NASDAQ:FAST): General Building Materials Industry. Market cap of $9.71B. Earnings to be released on 4/12/11. Put/call ratio has decreased 29.49% over the last two weeks (from 0.78 to 0.55). Short float at 10.13% (equivalent to 16.04 days of average volume), implying the stock is a short squeeze candidate. The stock has gained 34.69% over the last year.

5. ASML Holding NV (NASDAQ:ASML): Semiconductor Equipment & Materials Industry. Market cap of $19.11B. Earnings to be released on 4/13/11. Put/call ratio has decreased 28.00% over the last two weeks (from 0.5 to 0.36). The stock has gained 23.12% over the last year.

6. Independent Bank Corp. (NASDAQ:INDB): Regional Bank. Market cap of $581.46M. Earnings to be released on 4/14/11. Put/call ratio has decreased 26.23% over the last two weeks (from 0.61 to 0.45). The stock is a short squeeze candidate, with a short float at 9.71% (equivalent to 37.24 days of average volume). The stock has gained 16.73% over the last year.

7. ValueClick, Inc. (VCLK): Advertising Agencies Industry. Market cap of $1.16B. Earnings to be released on 4/15/11. Put/call ratio has decreased 18.92% over the last two weeks (from 0.74 to 0.6). Short float at 9.4% (equivalent to 6.23 days of average volume), implying the stock is a short squeeze candidate. The stock has gained 41.32% over the last year.

8. Tanzanian Royalty Exploration Corp. (TRE): Gold Industry. Market cap of $601.49M. Earnings to be released on 4/11/11. Put/call ratio has decreased 13.64% over the last two weeks (from 0.88 to 0.76). Risk-averse investors may appreciate that TRE has a relatively low correlation to the market (beta = 0.48). The stock is a short squeeze candidate, with a short float at 6.46% (equivalent to 11.08 days of average volume). The stock has gained 48.6% over the last year.

9. AMR Corporation (AMR): Major Airlines Industry. Market cap of $2.13B. Earnings to be released on 4/11/11. Put/call ratio has decreased 12.90% over the last two weeks (from 0.31 to 0.27). The stock has lost 27.8% over the last year.

Options data sourced from Schaeffer’s, all other data sourced from Finviz.

Source: Option Traders Turning Bullish on These 9 Companies Reporting Next Week