## Options Volatility and Implied Earnings Moves Today, September 04, 2024 ### Volatility Loading VIX was range-bound today as the major indices churned around the flat line, although there were a couple of moves that stood out. Volatility is usually a measure of fear by traders with higher volatility usually meaning higher fear. The VIX futures are showing that traders are expecting volatility to remain elevated through the end of the year. ### Implied Earnings Moves There were a lot of options traders making big bets on big moves in some stocks ahead of their earnings reports. Some notable names that have large implied moves are: - Apple (AAPL): Implied move of $7.28 or 2.5% - Amazon (AMZN): Implied move of $37.20 or 3.8% - Tesla (TSLA): Implied move of $22.92 or 5.3% ### Market Outlook The S&P 500 has been in a trading range for the last few weeks, and it's unclear whether the breakout will be to the upside or downside. The VIX is still elevated, which suggests that traders are still expecting volatility. However, the implied earnings moves for some of the biggest stocks are relatively small, which suggests that traders are not expecting any major surprises. ### Trading Strategy Given the current market conditions, it's important to be cautious with your trading. The VIX is still elevated, and the S&P 500 is in a trading range. This suggests that there is still a lot of uncertainty in the market. If you are going to trade, focus on stocks with strong fundamentals and technicals. You should also use a stop-loss order to protect your profits. ### Conclusion The market is still in a state of flux, and it's unclear what the future holds. However, by understanding the options market and the implied earnings moves, you can make more informed trading decisions.
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