Benzinga - Tech stock investors are bracing for some extreme volatility this week as a number of big names release fourth-quarter earnings in the coming days. However, the options market is also pricing in some major volatility for Upstart Holdings Inc (NASDAQ: UPST) and Opendoor Technologies Inc (NASDAQ: OPEN) even though neither company is reporting earnings this week.
Online Lender Rebound: Upstart Holdings is an online lending marketplace focused on personal loans. Rising interest rates have crushed Upstart and other online lenders and fintech stocks in the past year. Upstart shares are down 80.5% in the past 12 months, while shares of buy now, pay later provider Affirm Holdings Inc (NASDAQ: AFRM) are down 74.6%, and shares of online lender LendingClub Corp (NYSE: LC) are down 41.8%. Online lender SoFi Technologies Inc (NASDAQ: SOFI) shares are also down 39.7% in the past year, but the stock rallied 12.6% on Monday after reporting record sales and profits in the fourth quarter and issuing positive guidance for 2023.
Related Link: Why The IPO Window For Fintech Is 'Essentially Closed' In 2022
While Upstart is not expected to report earnings until Feb. 14, online lenders may experience some high volatility this week in response to the Federal Reserve interest rate decision on Wednesday. The options market is pricing in a 10.8% move from Upstart this week.
Housing Stocks Heat Up: The rally in real estate platform Opendoor continued on Monday, and the options market expects another big move from the stock by the end of the week. Opendoor shares are up 88% in January, while competing platform Zillow Group Inc (NASDAQ: Z) (NASDAQ: ZG) is up 30.1% and Redfin Corp (NASDAQ: RDFN) is up 66.7%. PulteGroup, Inc. (NYSE: PHM), Lennar Corp (NYSE: LEN) and other homebuilder stocks are also off to a hot start in 2023 despite a softening U.S. housing market.
Related Link: Zillow Gets A Buy Rating: Leading Bank Expects Housing Market To Trough In 2023
Opendoor does not report earnings until Feb. 23, but traders should prepare for some more volatility this week. The options market is pricing in a 13.2% move from Opendoor shares this week.
Benzinga's Take: Traders always anticipate potential volatility in stocks tied to earnings reports, but traders who identify stocks like Opendoor and Upstart that may have less obvious volatility catalysts can avoid being blindsided by big unexpected swings in the market.
Now Read: How Aggressive Will The Fed Be This Week? Why Powell's Comments Are 'The Fulcrum Issue For The Markets'
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.