ODDITY’s September 9 earnings release changes the information available to ODD options traders. The relevant distinction is between a business improving from a difficult period and a business having completed its recovery. An earnings announcement can provide evidence for the first without settling the second. That distinction matters when an option expires before the next operating update can confirm the longer-term story.
What the company reported
For the quarter ended June 30, ODDITY reported revenue of approximately USD 181 million, down 25% year over year, and adjusted EBITDA of USD 13 million. GAAP diluted EPS was USD 0.24; adjusted diluted EPS was USD 0.20. These are different accounting measures, not interchangeable earnings figures.
Management expects third-quarter revenue to decline approximately 5% year over year, with adjusted EBITDA of USD 18 million to USD 20 million. It continues working with its largest advertising partner on the IL MAKIAGE algorithm disruption. Its confidence in solving that issue is an expectation, not confirmation that normalization is complete.
The June 2 release had guided to a second-quarter revenue decline of 25% to 30% and adjusted EBITDA of USD 8 million to USD 10 million. The new results therefore reach the stronger end of the company’s revenue range and exceed its EBITDA range. That comparison is with management’s previous guidance; it does not establish a beat against analyst consensus.
Why It Matters For Options Traders
A business outlook and an option payoff answer different questions. The outlook describes possible future operating performance. The payoff depends on the underlying price relative to the strike at a particular expiration, together with the premium paid or received. A favorable interpretation of an earnings report alone cannot establish that any particular option was attractively priced.
The Options Industry Council explains that option values depend on stock price, strike, time, interest rates, dividends and volatility. Around earnings, implied volatility can fall after the announcement. A call can consequently lose value even if its underlying stock rises. This is a general pricing mechanism, not a claim about the movement of ODD’s options today.
For background, our guide to how earnings affect options prices and implied volatility explains why an event’s outcome and the premium charged before it should be evaluated separately.
Two timelines can point in different directions
Consider a purely hypothetical company that expects operations to recover over several quarters. An option expiring this week cannot remain open until that entire recovery is observed. Its holder has exposure to the market’s immediate reassessment, including any disappointment about the time required. A longer-dated option spans more of the operating timeline, but its price also includes a different amount of time and uncertainty.
Neither horizon is automatically superior. They represent different contracts. A business thesis can prove broadly correct while an option tied to an earlier date expires without value. Conversely, a short-lived change in expectations can move a stock substantially before any improvement appears in reported accounts. Matching a narrative to a contract therefore requires more than choosing whether the company sounds stronger or weaker.
The same distinction applies to comparisons across reports. An old pre-earnings expected move belongs to the quotes and expiration used to calculate it. Reusing that percentage after the release silently changes the question. The remaining contract now covers a different interval, and the announcement that informed the earlier premium is already public.
What a defensible post-earnings comparison needs
A useful comparison records the stock price and option bid and ask at identified times, the exact expiration and strike, and whether the observations come from regular trading or another session. Without those details, a headline about an option gaining or losing value can be difficult to interpret. A last trade may have occurred well before the latest stock move.
For example, imagine an option displayed at a bid of USD 1 and an ask of USD 2. The midpoint is USD 1.50, but that does not prove a transaction can occur there. Comparing yesterday’s executed price with today’s midpoint mixes different kinds of evidence. Commissions and the spread between buying and selling prices would further affect an actual result. These numbers are illustrative and are not ODD quotes.
An implied-versus-realized analysis also needs a consistent window. A close-to-open stock move is not the same observation as a close-to-close move. A percentage inferred from a near-term straddle is not a guaranteed range, nor is it a directional forecast. Any assessment of whether the event was more or less volatile than expected must state those assumptions explicitly.
This article does not establish a current ODD implied move, volatility contraction, option return or causal explanation for an intraday share-price change. Those conclusions require market observations beyond the company’s operating release. Keeping that boundary clear makes subsequent comparisons more useful and prevents an attractive narrative from being mistaken for measured trading evidence.
Common misunderstandings and caveats
Improvement relative to an earlier expectation does not mean every measure improved year over year. It is possible to outperform a previously cautious forecast while remaining below the prior year’s level. The comparison baseline should remain visible whenever a result is described as stronger.
Likewise, a management forecast is not a promise about the future stock price. It can be revised, the market may already anticipate it, and other information can dominate the share price before an option expires. Call volume alone does not establish bullish conviction: an observed transaction may be part of a hedge, spread or closing transaction, and its purpose is not visible from a volume total.
Options trading involves risk and is not suitable for all investors. A purchased option can lose its entire premium, while some written options can create much larger losses and assignment obligations. This is not financial advice. The discussion is educational and contains no recommendation to buy or sell ODD shares or any option contract.
Sources
- ODDITY, second-quarter 2026 results, September 9, 2026:
https://investors.oddity.com/news-releases/news-release-details/oddity-tech-reports-second-quarter-2026-results-expects - ODDITY, first-quarter 2026 results and prior second-quarter outlook, June 2, 2026:
https://investors.oddity.com/news-releases/news-release-details/oddity-tech-reports-first-quarter-2026-results-makes-progress - Options Industry Council, Option Price Behavior:
https://www.optionseducation.org/referencelibrary/faq/option-price-behavior - Options Industry Council, Implied Volatility and Post-Earning Volatility Risk:
https://www.optionseducation.org/videolibrary/implied-volatility-and-post-earning-volatility-risk
