Immersion Options Point to 2.4% Share Price Movement After Earnings

Pre-earnings options volume in Immersion (IMMR) is normal, with calls leading puts 19:5. Implied volatility suggests a 2.4% move in share price post-earnings, slightly higher than the median move of 1.6% over the past eight quarters.

Title: Immersion Corp (IMMR) Earnings Preview: Options Volume and Implied Volatility Indicators

Immersion Corp (IMMR), a touch-based technology company, is set to release its earnings report, and the market is closely watching the pre-earnings options volume and implied volatility. According to Barchart, the options volume for IMMR is normal, with call options leading put options by a margin of 19:5 [1]. This suggests that investors are more optimistic about the company's prospects, as they are placing more bets on an upward move in the stock price.

The implied volatility for IMMR's options contracts indicates a potential 2.4% move in the share price post-earnings, which is slightly higher than the median move of 1.6% over the past eight quarters. This elevated implied volatility suggests that investors expect a significant reaction to the earnings report, either positive or negative. Higher implied volatility often indicates that the market anticipates a higher degree of uncertainty or risk around the earnings release.

Investors should also keep an eye on the upcoming earnings release, as the Zacks Consensus Estimates anticipate earnings of $0.42 per share and a revenue of $31.75 million for the annual period [2]. While these estimates are unchanged from the last year, any revisions in analyst estimates can provide insights into the company's near-term business trends and impact the share price.

From a valuation perspective, IMMR is currently trading at a Forward P/E ratio of 16.21, which is a discount compared to the industry average of 17.08 [2]. This could make the stock an attractive investment for value-oriented investors, particularly if the earnings report meets or exceeds expectations.

In conclusion, the pre-earnings options volume and implied volatility indicators suggest that investors are cautiously optimistic about Immersion Corp's earnings report. The upcoming earnings release will be crucial for investors to assess the company's performance and make informed investment decisions.

References:
[1] https://www.barchart.com/stocks/quotes/IMMR/opinion/20-200-Day-MA-Crossover/strategy-charts
[2] https://finance.yahoo.com/news/immersion-immr-rises-yet-lags-221501003.html