Amazon capped a record week with an almost 15% on the day. In Wednesdays Earnings Playbook I highlighted the $415 Calls at $6.00. Those options traded for over $30 today.
$AMZN WEEKLY CALL CHAIN TODAY
$MSFT pulled off a big earnings move as well soaring over the expected $1.50 move and seeing it another $3.00 for a $4.50 total move. The $44.50 calls at $.25 I highlighted in the Earnings Playbook proved their worth soaring over 1,000%.
$MSFT $44.50 Call Chart
Coffee and Donuts - $SBUX $DNKN
Dunkin Brands rocketed higher after its earnings report and then rocketed even higher today. $SBUX basted through to new record highs as well. Both stocks offered tremendous gains to call option buyers.
$SBUX Weekly Call Contracts
There were plenty of earnings duds. The $GOOGL strangle I entered heading into last nights earnings report fell flat on its face. $CMG call buyers saw their options bidless at the market open. $YHOO calls worked for only a few minutes before succumbing to a selling frenzy.
Next week brings more earnings reports and with it the chance for more $AMZN type moves as well as $GOOGL type moves. I'll cover those soon.
Market Wrap Commentary
Stocks continued to love the dips this week. Seemingly every morning stock futures would fall and then the US stock market would open for trade, and the sellers from overnight would morph into an entirely different creature.... buying the heck out of everything in sight.
The NASDAQ and S&P 500 both posted a record close. What's scary is that the market has just started to break out. Stocks can remain overbought much longer than expected and I think that will be the case here as stocks continue to rally next week.
The breakout that I alluded to a few weeks ago is upon us:
The VIX beatdown is still in progress.
The methodical rally for the NASDAQ leaves us at a new record close. Have a great weekend.