The Broader Markets
Last Week – SPY finished the week inside its expected move, up 1.1% vs the 1.4% move options were pricing. The VIX was down on the week, into the holiday weekend, from 20 to a Friday close below 17.
This Week – SPY options are pricing a 1.1% move (in either direction) for the upcoming 4 day week. That corresponds to about $415 as a bearish consensus and $425 as a bullish consensus.
Expected Moves for This Week via Options AI:
- SPY 1.1%
- QQQ 1.5%
- IWM 1.6%
In the News
Meme stocks were back in the news last week with some large moves higher before some selling on Friday. Expected moves for this week:
- AMC AMC 30%
- Gamestop GME 13%
- Virgin Galactic SPCE 11%
Expected Moves for Companies Reporting Earnings
Earnings season quiets down a little this week but there are still reports from Zoom, Crowdstrike, Docusign, Broadcom and more.
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 for at this week (links go to the Options AI Calendar / Expected move page):
TUESDAY
Zoom ZOOM / Expected Move: 7.4% / Recent moves: -9%, -15%, +41%
Canopy Growth CGC / Expected Move: 11% / Recent moves: +12%, +5%, +8%
Ambarella AMBA / Expected Move: 7.4% / Recent moves: 0%, +15%. -10%
WEDNESDAY
Splunk SPLK / Expected Move: 7% / Recent moves: -3%, -23%, -1%
Cloudera CLDR / Expected Move: 9% / Recent moves: -13%, +7%, -12%
Netapp NTAP / Expected Move: 5.5% / Recent moves: -15%, +9%, +4%
THURSDAY
Broadcom AVGO / Expected Move: 3% / Recent moves: +1%, -1%, +3%
Crowdstrike CRWD / Expected Move: 6% / Recent moves: +6%, +14%, -9%
Lululemon LULU / Expected Move: 5% / Recent moves: -3%, -7%, -7%
Docusign DOCU/ Expected Move: 6% / Recent moves: -7%, +5%, -11%
Plug Power PLUG / Expected Move: 8% / Recent moves: -14%, +8%, -15%
Five Below FIVE / Expected Move: 6% / Recent moves: -4%, +4%, +8%
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.
