The Broader Markets
Last Week – SPY was down 2.6% the past week, a move nearly 3x more than what options were pricing. Implied volatility spiked more than 50%.
This Week – SPY options are pricing about a 2.4% move (about $11 in either direction) for the upcoming week. That is a significantly larger move than what options were pricing last into last week (just a $4 move)
Implied Volatility – The VIX ended Friday around 28, significantly higher on the week.
Expected Moves for This Week (Via Options AI)
- SPY 2.4% (about $11)
- QQQ 2.4% (about $10)
- IWM 3.8% (about $8)
- DIA 2.3% (about $8)
In the News
Equities weren’t the only assets moving on Friday’s Covid variant news, crude oil prices also tumbled. As an example, the etf USO was down 11%. Here’s a look at what options in USO are pricing for this week (about 6.5%) and into year-end (about 12%):
Expected Moves for Companies Reporting Earnings
Options AI puts the expected move at the heart of its trading experience. Traders are able to quickly generate credit and debit trades based on the Expected Move, or to their own targets in context of the Expected Move. More education on Expected Moves and options trading can be found at Learn / Options AI.
The expected moves link to the Options AI Calendar. Recent moves on prior earnings start with the prior quarter.
Tuesday
Salesforce CRM / Expected Move: 6.2% / Recent moves: +3%, +5%, -6%
ZScaler ZS / Expected Move: 9.6% / Recent moves: -3%, +12%, +5%
Wednesday
Crowdstrike CRWD / Expected Move: 7.7% / Recent moves: -4%, -4%, +6%
Snowflake SNOW / Expected Move: 7.9% / Recent moves: +8%, +4%, +1%
Okta OKTA / Expected Move: 7.6% / Recent moves: +3%, -10%, -6%
Splunk SPLK / Expected Move: 6.8% / Recent moves: -1%, -10%, -3%
Thursday
Docusign DOCU / Expected Move: 7.9% / Recent moves: +5%, +20%, -7%
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.
