Verifone Sytems Inc. (PAY) is a holding company engaged in secure electronic payment solutions. The stock is currently trading around $38.68 at the upper end of its 52 week range of $28.19-$39.25. The stock has been outperforming the market this year rallying of 3.92% year to date. PAY is scheduled to report earnings after the bell today, and the stock is lower on the session by around $0.20 or 0.51% ahead of the close.

Over the past 12 quarters PAY has rallied on earnings day 6 times with an average move of 10.29%. Over the past 12 quarters PAY has rallied from earnings to the nearest options expiration 7 times with an average move of 14.13%. The stock looks as if it could continue its recent trend and rip to the upside in today’s session despite being down a few cents. Investors are mainly looking to see if the collaboration between Visa and Verifone Systems to streamline the omni-channel commerce worldwide will beat the estimated 42 cents per share expectation. Other investors are looking to see a continued growth in revenue because Verifone Systems is an industry leader in this category.

The options market is currently implying a move of around $2.40 or 6.2% in PAY by this Friday’s close giving us targets of $36.28 and $41.08.

Five Below Inc. (FIVE) is a specialty retailer that sells merchandise mainly to a teen and a pre-teen customer base. The stock is currently trading around $34.47 at the middle of its 52 week range of $28.51-$47.89. The stock has been underperforming the market this year at a rate of 15.55% year to date. FIVE is scheduled to report earnings after the bell today, and the stock is higher on the session by around $0.21 or 0.61% ahead of the close.

Over the past 12 quarters FIVE has rallied on earnings day 6 times with an average move of 9.45%. The stock appears fairly bullish on a chart going into the release having traded above the Ichimoku Cloud for a few days. Over the past 12 quarters FIVE has rallied from earnings to the nearest options expiration 8 times with an average move of 7.17%. The stock looks as if it could continue its trend and rip to the upside in today’s session. Investors are mainly looking to see how the newly opened stores will fare after retail numbers have continued to disappoint month after month.

The options market is currently implying a move of around $3.70 or 10.7% in FIVE by this Friday’s close giving us targets of $38.17 and $30.77.

Ciena Corportation. (CIEN) provides communication networking equipment, software and services to support video and data traffic. The stock is currently trading around $24.66 at the very top of its 52 week range of $13.77-$24.66. The stock has been strongly outperforming the market this year rallying 27% year to date. CIEN is scheduled to report earnings before the bell tomorrow morning, and the stock is higher on the session by around $0.46 or 1.90% ahead of the close.

Over the past 12 quarters CIEN has rallied on earnings day 8 times with an average move of 9.93%. CIEN appears fairly bullish on a chart going into the release having traded above the Ichimoku Cloud for today’s session. Over the past 12 quarters CIEN has rallied from earnings to the nearest options expiration 8 times with an average move of 11.99%. The stock looks as if it could continue its trend of ripping to the upside in today’s session. The Ichimoku Cloud has consistently changed trends, but has been bullish today and shows a growing cloud for today’s trading session. Investors are mainly looking for a higher number of orders from international customers to boost Ciena’s top line. Other points to watch out for is the diversification and expansion of its customer base and addressable market as well as growing demand for cloud-based on-demand networking capabilities and how this will affect revenue.

The options market is currently implying a move of around $1.82 or 7.38% in CIEN by this Friday’s close giving us targets of $22.84 and $26.48.

CSR PLC. (CSRE) is a United Kingdom-based holding company and is a provider of silicon, software and services for the consumer electronics market. The stock is currently trading around $54.10 at the upper end of its 52 week range of $33.88-$55.63. The stock has been performing in line with the market this year at a rate of 2.73% year to date. CSRE is scheduled to report earnings before the bell tomorrow, and the stock is higher on the session today ahead of the release by around $0.50 or 0.93% ahead of the closing.

Over the past 12 quarters CSRE has rallied on earnings day 4 times with an average move of 13.35%. CSRE appears bullish on a chart going into the release. Over the past 12 quarters CSRE has rallied from earnings to the nearest options expiration 4 times with an average move of 25.93%. The stock looks as if it could continue its upward trend in today’s session before the close. The Ichimoku Cloud appears to have a growing size indicating a bullish trend. The stock has been trading well above the cloud since the beginning of May and looks to continue its trend as all indicators are ripping to the upside. Investors are mainly looking to see how the strong USD will impact revenue growth for this quarter.

The options market is currently implying a move of around $1.93 or 3.60% in CSRE by this Friday’s close giving us targets of $56.03 and $52.19.

Weibo Corp. (WB) is a social media platform for people to create, distribute and discover Chinese-language content. WB is trading at $17.12 around the middle of its 52 week range of $12.11-$26.08. Year to date the stock has outperformed the market rallying 20.75%. The stock ripped up today by about 8.08% or $1.28.

Early in the session a trader bought 2,500 of the WB June 18.0 Calls for $0.45 when the stock was trading at $16.95. This order was recorded about an hour and a half after the open on OptionHacker, and the stock rose about $0.17 to $17.12 after the trade hit the tape. Over 5,300 contracts have been traded today hinting at bullish sentiment. The WB June 18.0 Calls for $0.45 have traded as high as $1.25 today making this a profitable trade. This stock has been trading above and below the Ichimoku Cloud for a few weeks now. The Ichimoku Cloud continually switches between bullish and bearish clouds indicating varying trends. The cloud remains thin meaning there is not a prevalent trend in the graph of WB.

Trade: A trader bought 2,500 of the WB June 18.0 Calls for $0.45
Risk: $45 per 1 lot
Breakeven: $18.45

If a trader bought a 20 lot of these Calls they would have profited $1,600 at the highs on $900 in risk. This is a great example of profitable UOA.

Eli Lilly and Co. (LLY) develops, manufactures, and sells products in two business segments; human pharmaceutical products and animal health products. LLY is trading at $78.19 around the upper end of its 52 week range of $58.50-$79.55. Year to date the stock has outperformed the market rallying,13.73%. The stock ripped up today by about 2.33% or $1.78.

Early in the session a trader bought 3,100 of the LLY June 80.0 Calls for $0.38 when the stock was trading at $77.81. This order was recorded about an hour after the open on OptionHacker, and the stock rose about $1.78 to $79.97 after the trade hit the tape. Over 9,900 contracts have been traded today hinting at bullish sentiment. The LLY June 80.0 Calls for $0.38 have traded as high as $1.15 today making this a profitable trade. This trader is most likely establishing a long position expecting the stock to continue its bullish trend for a few weeks. This stock has been trading above the Ichimoku Cloud for a few weeks now. The Ichimoku Cloud continues to grow and points the technical analysis in the direction of a bullish trend due to an increasing cloud size indicating a hard to reverse trend.

Trade: A trader bought 3,100 of the LLY June 80.0 Calls for $0.38
Risk: $38 per 1 lot
Breakeven: $78.57

If a trader bought a 20 lot of these puts they would have profited $1,540 at the highs on $760 in risk. This is a great example of profitable UOA.

ITT Educational Services Inc. (ESI) is a provider of postsecondary degree programs in the United States to approximately 55,000 students. ESI is trading at $4.44 around the lower end of its 52 week range of $1.93-$18.83. Year to date the stock has severely underperformed the market this year, falling 53.69%. The stock ripped higher today by about 84.65% or $2.04 during the trading session.

Early on a trader bought 2,309 of the ESI June 3.0 Calls for $0.45 when the stock was trading at $2.60. This order was recorded about an hour after the open on OptionHacker, and the stock rose about $2.00 to $4.60 after the trade hit the tape. Over 2,700 of these June 3.0 Calls have been traded today hinting at bullish sentiment. The ESI June 3.0 Calls have traded as high as $1.65 today making this a very profitable trade. This stock has been trading below the Ichimoku Cloud for a few weeks now until it ripped to the upside in today’s session and continued to trade above the Ichimoku Cloud.

Trade: A trader bought 2,309 of the ESI June 3.0 Calls for $0.45
Risk: $45 per 1 lot
Breakeven: $4.89

If a trader bought a 20 lot of these puts they would have profited $2,400 at the highs on $900 in risk. This is a great example of profitable UOA.

The first week of June will kick off on Monday with Personal Income and Outlays for April followed by a report of the Purchasing Managers’ Manufacturing Index (PMIs) which provides insight into a select number of companies in the private sector of the economy. Following this release is the ISM manufacturing composite index presenting the general direction of production, new orders, order backlogs, their own inventories, customer inventories, employment, supplier deliveries, exports, imports, and prices. The last report to listen to on Monday is the Construction Spending on residential, non-residential, and public projects. Trends in the construction data most likely carry valuable clues for the stocks of home builders and large-scale construction contractors.

On Tuesday, only one report will be released. The major event to look for is Factory Orders for both durable and non-durable goods. This report most likely correlates with economic growth because that translates to higher corporate profits.

Wednesday has a few more releases to watch out for such as the ADP Employment Report which represents 400,000 U.S. business clients and approximately 23 million U.S. employees working in all private industrial sectors. Next is the International Trade release which breaks down the export, import and trade balances. Many traders will most likely be watching this to see how the strong USD has affected international trade. Three more releases later on Wednesday include the ISM Non-Mfg Index representing more than 375 firms from various sectors across the U.S. The next release will be the Energy Information Administration (EIA) Petroleum Status Report indicating weekly information on petroleum inventories in the U.S. whether extracted here or abroad. Last to be reported will be the Beige Book which is utilized in the Federal Open Market Committee monetary policy meetings and is a compiled list of economic data from the 12 Federal Reserve Districts.

Thursday has only a few reports to be released at the opening bell. First will be the Jobless Claims numbers enlightening the public on unemployment claims over the past week. Following this report is the Productivity and Costs Report which measures the growth of labor efficiency in producing economy’s goods and services which is most likely used as an indicator of future inflationary trends.

The last day of the trading week, Friday, will be releasing one report, but a very detailed one. The Employment Situation will be released and closely watched especially for wage growth, a key metric the Fed has been citing recently.

Key Earnings Reports Next Week

• After the Bell on Tuesday | Dollar General Corportation (DG)
• Before the Open on Wednesday | Vera Bradley, Inc. (VRA)
• After the Bell on Wednesday | Five Below, Inc. (FIVE)
• Before the Bell on Thursday | J.M. Smucker Co. (SJM)
• After the Bell on Thursday | Zumiez Inc. (ZUMZ)

Splunk, Inc. (SPLK) provides software products for users to manipulate and analyze data regardless of format or source. The stock is currently trading around $69.85 at the upper end of its 52 week range of $39.35-$74.88. The stock has been outperforming the market this year rallying 17.95% year to date. SPLK is scheduled to report earnings after the bell today, and the stock is ripping up ahead of the release. SPLK is higher on the session by around $0.19 or 0.51% ahead of the closing.

Over the past 12 quarters SPLK has rallied on earnings day 8 times with an average move of 9.57%. SPLK appears bullish on a chart going into the release approaching its high of the past 20 trading days of $70.97. Over the past 12 quarters SPLK has rallied from earnings to the nearest options expiration 8 times with an average move of 9.38%. The stock looks as if it could continue its trend and rip to the upside in today’s session. The cloud appears to be consistently changing its trend. Investors are mainly looking to see if Splunk will turn a profit for the first time since its IPO in 2012. Other points to watch for are how the rollout of Splunk light fared in the recent quarter, and how the customer base increase of 7% will affect earnings.

The options market is currently implying a move of around $5.5 or 7.91% in SPLK by this Friday’s close giving us targets of $74.35 and $64.35.

Michael Kors Holding Limited (KORS) is a major player in global luxury apparel and accessories. KORS is trading at $46.62 around the lower end of its 52 week range of $46.10-$98.96. Year to date the stock has underperformed the market by quite a bit selling off 37.91%. The stock dropped today by about 23.04% or $13.96. This move happened after KORS released disappointing earnings before the bell this morning.

Early on a trader bought 9,000 of the KORS June 45.0 Puts for $0.35 when the stock was trading at $49.40. This order was recorded about an hour after the open on OptionHacker, and the stock dropped about $2.78 to $46.62 after the trade hit the tape. Over 16,300 have been traded today hinting at bearish sentiment. The KORS June 45.0 Puts for $0.35 have traded as high as $1.15 today making this a profitable trade. This trader is most likely establishing a short position expecting the stock to continue its bearish trend for a few weeks. This stock has been trading below the cloud for a few weeks now. The Ichimoku Cloud continues to grow and points the technical analysis in the direction of a bearish trend due to an increasing cloud size indicating a hard to reverse trend.

Trade: A trader bought 9,000 of the KORS June 45.0 Puts for $0.35
Risk: $35 per 1 lot
Breakeven: $44.65

If a trader bought a 20 lot of these puts they would have profited $1,600 at the highs on $700 in risk. A great example of profitable UOA.