Good morning!

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Stock futures are again lower, continuing on a theme since last Thursday. This is the 4th straight day starting in the red. Central banks are the focus this week with Jerome Powel on Capitol Hill again today while earlier, the Bank of England announced a 50 basis point raise. You’re probably used to hearing the word “stubborn” inflation by now but the “stubborn” part is clearly something central banks are still trying to figure out. With other central banks taking the lead (or catching up) even while the FOMC is “pausing” treasury yields remain bid. 1-year treasury yields are now the highest they’ve been during this cycle. However, the 2-year yield is still lower than the level it reached prior to the Silicon Valley Bank mess (that sent yields plummeting.) Yields bottomed around the first week of May. But stocks have managed to climb alongside yields, with the SPY up 8% while the 2-year yield has climbed a full point over the past month and a half. In other words, stocks have largely shrugged off the bond market recently and don’t seem overly concerned with the FOMC picking up where it left off, or keeping rates higher for longer. So far.

SPY options are pricing about a 0.4% move for today, and about a 0.6% move into tomorrow’s close. That’s about 10 vol.

Pre-Market Movers:
Some notable stocks making moves this morning.

  • Shiftpixy Inc (PIXY) +103.79%
  • Root Inc (ROOT) +49.48%
  • Palantir Technologies Inc Cl A (PLTR) -2.46%
  • AMC Entertainment Holdings (AMC) -6.84%
  • Roivant Sciences Ltd (ROIV) +13.85%
  • Allovir Inc (ALVR) -23.33%
  • Boeing Company (BA) -3.34%
  • Inc (OSTK) +7.65%
  • Locafy Ltd (LCFY) +160.29%

Today’s Earnings Highlights:

  • FactSet Research Systems Inc. (FDS) Expected Move: 5.60%
  • Commercial Metals Company (CMC) Expected Move: 6.63%
  • GMS Inc. (GMS) Expected Move: 6.98%

Economic Calendar:

  • At 08:30 AM (EST) Jobless Claims 4-week Average (Jun/17) Estimates: 242.01, Prior: 246.75
  • At 08:30 AM (EST) Chicago Fed National Activity Index (May) Estimates: 0.1%, Prior: 0.07
  • At 08:30 AM (EST) Initial Jobless Claims (Jun/17) Estimates: 260, Prior: 262
  • At 08:30 AM (EST) Continuing Jobless Claims (Jun/10) Estimates: 1782, Prior: 1775
  • At 09:55 AM (EST) Fed Bowman Speech Impact: Medium
  • At 10:00 AM (EST) Fed Chair Powell Testimony Impact: High
  • At 10:00 AM (EST) Existing Home Sales MoM (May) Estimates: -0.5, Prior: -3.4
  • At 10:00 AM (EST) Existing Home Sales (May) Estimates: 4.25, Prior: 4.28
  • At 01:40 PM (EST) Fed Mester Speech Impact: Medium

Scanner Highlights:
Based on the prior day’s trading action.

  • Overbought (RSI): DAL (82), CCL (81), RCL (80), KBH (78), JETS (77), HUT (77)
  • Oversold (RSI): GOLD (29), FSLR (37), FL (37), GDX (37), DOCU (37), PENN (38), MRNA (39)
  • High IV: BYND (+128%), NKE (+105%), HUT (+105%), KEY (+102%), KRE (+101%), ZION (+100%), OPEN (+100%), PLTR (+98%), NFLX (+98%), WFC (+96%), MARA (+94%), MS (+93%), RIOT (+93%), BAC (+92%)
  • Unusual Options Volume: SPOT (+888%), FDX (+876%), MARA (+768%), MSTR (+756%), RAD (+725%), HUT (+671%), RIOT (+623%), XHB (+538%), COIN (+480%), KBH (+455%), RIVN (+441%), PTON (+419%), SCHW (+361%), SNOW (+338%), DOCU (+302%), ADBE (+297%), NFLX (+297%), MS (+278%), DIS (+271%)

Full lists here: Options AI Free Tools.

Chart of the Day:

Tesla stock is up around 70% in the past 2 months yet options are only pricing about a 20% move for the rest of the Summer. Options rarely get this name right when it makes big rips higher.

That’s all for now. Have a great day!

The Options AI Team

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, member FINRA and SIPC.

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