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$VRTX Selling Out-Of-The-Money Calls The Day Before Earnings Had 75% Winning Occurrences, For An Average Gain Of +55.8%.

Summary

option traders are expecting a ± 5.7% move for this earnings.

(VRTX) is scheduled to release earnings on January 31, 2018.

VRTX stock price has drifted down after the open, on average closing -1.3% lower over that time.

VRTX to Release Earnings on January 31

Vertex,  (VRTX) is scheduled to release earnings on January 31, 2018after the market closes, and will hold a conference call at 4:30 PM ET on the same day. The stock currently trades at 165.49, which is 15.1% higher than the close following its last reported earnings, trading with a range of 136.50 to 171.26 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 5.7% move for this earnings, and during the previous earnings release, the stock experienced a -2.1% move. Over the last 11 quarters, the absolute average move has been ± 2.7%, with a minimum move of 0.2% and a maximum move of 7.8%. VRTX has only experienced 2larger-than-expected earnings moves in the last 11 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected one notable historical trend.

Earnings Day Drift:For each of the last 4 quarters, VRTX stock price has drifted down after the open, on average closing -1.3% lower over that time.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling out-of-the-money calls the day before earnings had 75% winning occurrences, for an average gain of +55.8%. Additionally, selling at-the-money straddles resulted in 75% winning occurrences, for an average return of +25.9%.

EPS Estimate

Analysts are currently expecting VRTX to report an earnings of $0.53 per share, compared to $0.35 for the same quarter last year. Revenue is expected to come in at $594.4 million versus $458.7 million for the previous year.