The Broader Markets
Last Week – SPY finished the week well beyond its expected move, up 3% vs the 1.6% move options were pricing and making new all time highs. The VIX was lower as stocks moved higher, closing below 16 after beginning the week above 20.
This Week – SPY options are pricing about a 1% move (in either direction) for the upcoming week. That corresponds to about $423 as a bearish consensus and $430 as a bullish consensus.
Expected Moves for This Week via Options AI:
- SPY 0.8% (0.6% less than last week)
- QQQ 1.3% (0.5% less than last week)
- IWM 1.2% (1.3% less than last week)
In the News
As markets made new highs meme stocks were once again some of the most actively traded names. Here are the expected moves for this week in some of the trending tickers:
- Gamestop GME 13%
- AMC Theaters AMC 15%
- Virgin Galactic SPCE 19%
- Contextlogic WISH 16%
- Clover Health CLOV 13%
- Workhorse WKHS 10%
Expected Moves for Companies Reporting Earnings
Earnings reports are on the light side this week but include Micron and Bed Bath and Beyond.
The Options AI Earnings Calendar is a free resource to keep up to date on upcoming earnings, how options are pricing potential moves, and how that compares to actual moves from prior earnings (starting with most recent). Here is a look at this week’s charts (links go to the Options AI Calendar / Expected move page):
Wednesday
Micron MU / Expected Move: 5% / Recent moves: +5%, -2%, -7%
Constellation Brands STZ / Expected Move: 4% / Recent moves: -5%, +2%, -3%
Bed Bath & Beyond BBBY / Expected Move: 12% / Recent moves: -12%, -11%, +25%
Options AI puts the expected move at the heart of its trading experience. Traders are able to quickly generate trades based on the move, or to place their own price target in context of the expected move.
More education on expected moves and spread trading can be found at Learn / Options AI.
Based upon publicly available information derived from option prices at the time of publishing. Intended for informational and educational purposes only and is not any form of recommendation of a particular security, strategy or to open a brokerage account. Options price data and past performance data should not be construed as being indicative of future results and do not guarantee future results or returns. Options involve risk, including exposing investors to potentially significant losses and are therefore not suitable for all investors. Option spreads involve additional risks that should be fully understood prior to investing. Securities trading is offered through Options AI Financial, LLC a registered broker-dealer.
