OLED earnings are due out tomorrow evening
Apple (AAPL) supplier Universal Display Corporation (NASDAQ:OLED) is enjoying a modest 0.3% lift this afternoon, last seen at $178.31 as Wall Street gears up for the company's fourth-quarter report. Slated for after the close tomorrow, Feb. 20, below we will dive into what the options market is pricing in the for the stock's post-earnings moves, and see how the equity has been faring on the charts.
From a technical viewpoint, OLED has been stuck in a series of higher lows since mid-2019. The stock recently dropped below the 200-day trendline after a run of support in October, but is now holding steady at the $170 floor. The screen maker was back near record-high territory just last month, but stalled out near the $222 mark, and gapped lower shortly thereafter.
Looking at OLED's earnings history, the stock has closed higher the day after reporting in five of the past eight quarters, including a 15.3% in October. During the past two years, the equity posted an average 13.9% next-day swing, regardless of direction -- slightly smaller than the option's current-quarter estimated post-earnings move of 15.6%.
Short interest on OLED has dropped 14.8% during the most recent reporting period, and now accounts for 2.4% of the stock's total available float. At Universal Display stock's average pace of daily trading, it would take short sellers just over two days to buy back their bearish bets.