Wall Street is bracing for a volatile week as several high-profile companies prepare to release third-quarter earnings, with options markets signaling sharp price swings ahead.
The broader earnings season has been relatively upbeat – with over 80% of the companies topping expectations – and this week’s lineup includes smaller, high-beta names that could see outsized reactions.
Traders are closely watching Carvana, Teladoc Health, and Reddit, in particular, each of which has an implied move of more than 13%, according to options pricing.
These stocks are not only sensitive to earnings surprises but to broader narratives around artificial intelligence (AI), consumer demand, and digital health as well.
Here’s what to expect from each report – and how analysts suggest positioning.
Carvana Co (NYSE: CVNA)
Used car retailer Carvana is set to report third-quarter results on October 29th and options traders are bracing for a potential swing of 14.6% in either direction.
Analysts expect earnings per share to come in around $1.33 – sharply above 89 cents only in Q3 of last year.
Meanwhile, revenue is estimated at $5.05 billion, continuing the company’s growth trajectory.
CVNA stock has more than doubled since early April, fuelled by robust demand for used vehicles and tailwinds from tariff-related shifts in the global supply chain.
And while there are concerns that the rally may prove overextended, especially if margin compress or inventory levels rise, Wall Street remains largely bullish on Carvana shares for the next 12 months.
The consensus rating on Carvana remains at “overweight” with the mean target of $426, indicating potential “upside” of another 20% from here.
Teladoc Health Inc (NYSE: TDOC)
Teladoc will report its third-quarter financials on October 30th, and the options market is pricing in a 14.9% move – among the largest expected swings this week.
Analysts forecast the digital medical services company to lose 31 cents on a per-share basis in Q3 (adjusted) on $626 million in revenue.
This would mean a year-over-year decline on both the top and bottom lines.
TDOC shares have been under pressure this year due to competitive threats from larger telehealth platforms and concerns over patient retention.
The firm’s pivot toward AI-driven diagnostics and personalized care has drawn mixed reactions as well.
Therefore, Wall Street currently rates Teladoc shares at “hold” only, with the mean target of about $9.14 indicating a lack of meaningful upside from here.
Reddit Inc (NYSE: RDDT)
Reddit is scheduled to report its third-quarter earnings on October 30th, and options traders expect its stock to swing by 13.8% in either direction following the release.
Expectations are for the forum social media platform to more than triple its per-share earnings to 52 cents in Q3 on roughly $550 million in revenue, up 58% versus on a year-over-year basis.
RDDT stock has been a lucrative investment in 2025, now up some 150% versus early April.
The company’s monetization efforts – particularly its push into targeted advertising and licensing data to AI firms – have impressed investors.
Despite stretched valuation that runs the risk of a pullback if growth slows, Wall Street continues to recommend owning Reddit shares heading into 2026.
The consensus “overweight” rating comes with price objectives going as high as $303, indicating potential for another 35% upside from here.
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