Volatility Ramps Up for ON Semi, Qnity Electronics Ahead of Earnings

Traders are bracing for bigger swings than usual in shares of companies like ON Semi and Qnity Electronics after their earnings reports. This volatility is expected due to the options market overpricing their moves, according to a Bloomberg Law analysis.

The analysis examined S&P 500 members reporting in the coming days, comparing their implied earnings-day moves with past fluctuations following similar results. Companies like Aptiv, Caterpillar, and Palantir are among those seeing higher-than-expected volatility predictions.

For example, while Aptiv's past earnings have seen a move of 6/8, its current options market is pricing in an even larger swing. Similarly, Palantir's implied earnings-day move is 4/6, exceeding its historical average.