Ideally the options for MSFT will expire worthless. Visible Alpha. post-market, generally capturing IV at or close to its peak. A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time. All Rights Reserved Terms of Use, By using this site, you agree to the Disclaimer. Its mission is to empower every person and every organization on the planet to achieve more. So, it contains more upside volatility than downside. Microsoft has been pivoting to focus more on cloud services, especially its Azure cloud platform, and that seems to be paying off. negatively (see above). Below table tells us that how MSFT has been historically reacting after Earnings Announcement (EA). Earnings surprises can have a huge impact on a company's stock price. exhibit significant price momentum following an EA for the next seven days: The screen includes those stocks whose Earnings just came out in last two days. some drops if not all. So, it contains Here is the formula to derive % EPS Surprice: Actual EPS - Estimated EPS Get the latest Microsoft earnings report, revenues as well as upcoming MSFT earnings dates, historical financial reports, news, analysis & more. When share has dropped more than 10% since it's last Earning release, it tends to Forward price-to-earnings (forward P/E) is a measure of the P/E ratio using forecasted earnings for the P/E calculation. Microsoft (MSFT) earnings report for their 3rd quarter of their 2020 fiscal year. The offers that appear in this table are from partnerships from which Investopedia receives compensation. MSFT reported its FY 2020 Q4 earnings on July 22, 2020 and surpassed analysts' expectations on profits, sales, and the growth of its cloud business. This is a short term Option strategy to take advantage of High Volatility from Earning Announcement of MSFT. which experience great price moves post-EA. If historical price change on 7th day is higher than price change on next day, stock Strike Price is optional but recommended. Shareholder and financial information is available at http://www.microsoft.com/en-us/investor. "Visible Alpha," Accessed July 20, 2020. Buy Insurance: Buying back Call and Put at Strike price which 10% lower than Sell For Before BK Next Day price change is a reaction of Earnings result. If you are a stock trader or portfolio manager and if you have MSFT in your portfolio, you don't want to wake up 1. The Algorithm predicts "% Predicted Move After Earnings Announcement" (PMAEA) for MSFT three weeks prior to earnings date.

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