Earnings, Earnings, Earnings!!

Heading into Thursday, we have a huge day of earnings.

On Thursday afternoon 4 of the ‘Big 5’ report their earnings…

AAPL, AMZN, FB, GOOG/GOOGL  all report on Thursday night.

This represents about 35% of the NASDAQ 100 reporting in one afternoon.

One would think that this would cause the IV of the QQQ to be OFF THE CHARTS

Given how much those names have rallied…

And how much the market has been moving over the last 6 months can only help.

So why is the QQQ 30 Day IV so low:

QQQ premiums were lower TWO WEEKS AGO!!!

The straddle that expires on Friday to me…

SEEMS DIRT CHEAP.

I can buy the July31 QQQ 257 straddle for about 7 bucks…

The ETF moved more than 3 bucks TODAY…

The VIX Light is Red.

Your Only Option,

Mark Sebastian

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.