Roche Sales Update: Buying Lower or Selling Higher, and Being Paid to Wait
Author: Koen Hoorelbeke, Investment and Options Strategist
Date: October 20, 2026
Overview
Roche is set to report its nine-month sales on October 22, 2026, with shares having risen approximately 9% since July. The article discusses strategies for two types of investors: one looking to buy shares at a lower price and another who already owns shares and is considering selling them at a higher price.
Market Context
Before earnings reports, options on a company's shares typically see increased pricing due to heightened volatility expectations. Roche's shares closed at CHF 380.10, reflecting a 9% increase since the last report. However, the strong Swiss franc poses challenges, as sales growth appears diminished when converted to francs.
Historical Performance
Roche's past reports have shown minimal dramatic movements, with an average share price change of about 2.2% on reporting days. The article notes that the last four sales updates have caused similar movements as full results, averaging around 2.6% to 2.7%.
Options Market Expectations
The options market anticipates a potential share price movement of approximately 5.7% following the report, indicating a range between CHF 353 and CHF 397. This expectation accounts for both the report and typical market fluctuations over the following month.
Investor Strategies
For the Investor Looking to Buy Lower: Cash-Secured Put at 355
This strategy involves selling a put option at a strike price of CHF 355, allowing the investor to buy shares at that price if Roche falls below it by the option's expiry on November 20, 2026. The seller receives a premium for this option, which provides a potential profit if Roche remains above CHF 355.
- Net Credit: CHF 294
- Break-even at Expiry: CHF 352.06
- Maximum Profit: CHF 294
- Maximum Risk: CHF 35,206
For the Investor Who Already Holds Roche: Covered Call at 400
This strategy involves selling a call option at a strike price of CHF 400, allowing the investor to sell their shares at that price if Roche exceeds it by the expiry date. The premium received provides some income while retaining ownership of the shares.
- Net Credit: CHF 314
- Break-even at Expiry: CHF 376.96
- Maximum Profit: CHF 2,304
- Maximum Risk: CHF 37,696
Considerations for Investors
Investors should evaluate the bid-ask spread, open contracts at the chosen strike price, and the timing of the report. The article emphasizes the importance of having an exit plan and being aware of assignment risks associated with options trading.
Conclusion
The article presents two distinct strategies for investors based on their positions regarding Roche shares. Both strategies involve selling options to generate income while managing risk. However, the inherent risks of options trading are highlighted, and investors are encouraged to conduct thorough due diligence before proceeding.