Options priced in a 12.5% move for Palantir $PLTR after last night's report. It was down as much as 9.2% before this morning's open, and it's now down 2.0%, after adjusted EPS of $0.44 vs. $0.41 expected.
Here's how to find the implied move for any stock before it reports:
1. Find the first options expiration after the report. For PLTR, Friday, Nov. 6.
2. Pick the strike closest to the share price: $182.50, with PLTR at $181.44.
3. Add the call and put prices at that strike. Together they're called a straddle, about $22.70 here.
4. Divide by the share price: $22.70 ÷ $181.44 = 12.5%.
That's the move, in either direction, that options were pricing in. This is the simple version; some traders scale the straddle down slightly.
The rest of last night's and this morning's reports, with the implied move in brackets: Apple ($AAPL ) -1.7% (4.4%), EPS $2.10 vs. $1.99 expected. Williams ($WMB ) +3.3% (5.1%), adjusted EPS $0.54, in line. Diamondback Energy ($FANG) -2.2% and Marathon Petroleum ($MPC) -0.1% list only monthly options; adjusted EPS $5.86 vs. $5.60 and $26.93 vs. $26.00.