Sea Ltd is poised to report earnings before the market opens on Aug 12. Consessus expects 2Q revenue to surge 32%, GAAP net income is expected to be 435.36 million, or 0.75 per share, which represents a 436% increase year-over-year.
Option traders are pricing in a potential move of 11% in either direction following the earnings release. Investors may consider high-volatility options plays like straddles and strangles.
Sea May Hit Sixfold Earnings as All Segments Deliver
Sea's earnings could grow more than 400% in 2Q25 year over year, underpinned by a surge in profits at Shopee. Sea's GMV was likely close to 1Q's $28.6 billion, implying 23% yearly growth. Its take rate could expand from stronger ad monetization, higher adoption of owned logistics, and increased commissions.
Monee gains from rising buy-now-pay-later usage and deeper loan penetration beyond Shopee, while Garena could see sales rise from 10's bookings surge.
Competitive pressure remains a risk as Shopee's average monthly active users(MAUs) in 2025 were flat sequentially in Southeast Asia vs. 55% growth for Temu and 5% for TikTok, Sensor Tower data show.
Options Traders Anticipate a 11% Move
The expected move for Sea options expiring on Aug 15, 2025 (5 days) (w) is ±$16.25 (11.0%), with a price range of $131.45 - $163.95.
Source: OptionCharts
Call open interest expiring this Friday totals 51,915, while puts stand at 19,391 — indicating bullish tilt among options traders.
Source: OptionCharts
Open interest for $190 and $130 calls expiring this week are particularly high, with 10,461 and 10,224 unclosed contracts as of Aug 8.
Source: OptionCharts
Option Strategy
1. Long Straddle
Structure: Buy ATM $150 CALL + ATM $150 PUT
$SE Straddle 250815 150.0C/150.0P$
Key Metrics:
Cost: ~$17.24 (hypothetical mid-price; CALL = $7.40, PUT = $9.84)
Breakeven: Stock >$166.92 or <$133.08 (11% move required)
Max Risk: $16.92 per straddle (premium paid)
Source: Tiger Trade App
Rationale:
High IV inflates premiums, making breakeven harder to achieve despite the large expected move.
Suitable if you expect exceeding consensus volatility (e.g., >11% move).
2. Long Strangle
Structure: Buy OTM $160 CALL + OTM $140 PUT
$SE Strangle 250815 140.0P/160.0C$
Key Metrics:
Cost: ~$9.08 (CALL = $5.08, PUT = $4.00)
Breakeven: Stock >$168.78 or <$131.22 (12.5% move required)
Max Risk: $8.78 per strangle.
Source: Tiger Trade App
Rationale:
Lower upfront cost but demands an even larger move than the straddle.
Viable only if anticipating extreme outlier volatility.
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