Cloud Stock Pulls Back Before Highly Anticipated Report

Samsara Inc (NYSE:IOT) is set to announce fiscal first-quarter earnings after the close on Thursday, June 4. According to Zacks Research, analysts expect fiscal-second quarter earnings of 13 cents per share on revenue of $455.46 million. At last look, IOT is trading down 2.7% at $36.34.

The options pits are pricing in a post-earnings swing of 22.7%, regardless of direction, this time around, nearly double the stock's 12.4% average over the last eight quarters. IOT has closed four of its last eight post-earnings sessions higher, including a 19.5% pop in March. 

IOT is extending its pullback from Monday's multi-month high, though support has emerged from its 260-day moving average, keeping today's losses in check. Plus, short interest remains elevated, now representing 11.1% of the stock’s available float after rising 18.4% over the last two reporting periods. 

The cloud stock sports a 10-day call/put volume ratio of 6.14 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 90% of all other readings from the past year, hinting at a much healthier-than-usual appetite for bullish bets of late.