Quick Morning Thoughts

unusual options trades and unusual options volume

Earnings season is now under way.  Last night $NFLX reported earnings and hit a new record high, but the move was well under the move the market was expecting.  This morning the stock is set to open marginally higher, giving the option sellers the win on both sides of the chain.  Historically Netflix has offered some tremendous out of the money trades into the report.

Netflix Earnings Trade – Why we trade options

After some enormous post earnings moves, the stock is acting like it was up all night binge watching Netflix.

There will be plenty of more earning trades coming up, including $IBM and $EBAY.

After a strong all day rally yesterday as fear of Nuclear war abated, this morning stock futures are modestly lower.  The VIX is back at the key 15 level, and small caps are continiuning their multi-month chop fest after the post election ramp-o-thon.

The VIX  is up over 2%, but off the highs from late last week.

every spike higher for the VIX the last 8 years has been met with a sharp decline soon there-after, which means the current 15 reading on the VIX will likely be short lived.... right?  Or is it different this time?

Every time the VIX spikes it is a little different.  There is a different excuse, or reason for the spike.  I'll get concerned when the reason for the spike in the VIX is none at all.

As Long As These Pullbacks Have A Name Stocks Head Higher

The trend for the S&P500 remains up.

For this week as earnings ramp up, keep a close eye on the 'fear index' , the VIX, and intra-day VXX to follow up on yesterdays weakness.  This could spark an 'earnings' rally over the coming weeks.

Earnings this week courtest of earningswhipsers.

See you in the chat room



Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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