Unveiling Options Volatility and Earnings Insights for April 8 – 12

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By Ronald Tech

A Glimpse Into Corporate Earnings

As earnings season marches back onto the financial stage, the spotlight shines on major players like JP Morgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and Delta (DAL) preparing to unveil their financial performance this week. The scene is set for a drama-filled reveal that could sway markets in unpredictable ways.

The Dance of Implied Volatility

Before the grand reveal, the stage hums with uncertainty, and implied volatility takes center stage. The market, beset by whispers and murmurs, lurches about in the darkness, driving up demand for the companies’ options and sending implied volatility – and option prices – soaring.

But once the earnings ball drops, the stage clears, and implied volatility retreats to its usual tranquil levels, leaving traders to ponder their next moves.

The Expected Range Unveiled

To glean a clearer picture of what may transpire, traders gaze into the abyss of the expected range. By summing the at-the-money put and call option prices post-earnings, traders try to navigate the murky waters of potential stock movements.

To strategize, traders have a buffet of options – bear call spreads for the pessimists, bull put spreads for the optimistic, and iron condors for the neutral traders treading the middle ground. But caution is key. If the boat rocks too violently, taking on more than a 1-3% risk per trade could lead to dangerous waters.

A Peek at Stocks with High Volatility

For those seeking thrills, a dive into stocks with high implied volatility beckons. The stock screener, armed with filters for call volume, market cap, and IV Percentile, offers a peek behind the curtain. Yet, the current stage remains less exuberant, with few high-volatility acts in the limelight.

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Prepare for the unexpected, buckle up, and hold on tight. The show must go on.

Intriguing Trends in Options Activity

Breaking news echoes through the market, with stocks like DVN, XOM, INTC, COIN, and OXY, finding themselves at the center of peculiar options activity. The whispers of trades and the clatter of keyboards harmonize in an electrifying duet.

But remember, this is a high-wire act – risky, thrilling, and potentially hazardous. Proceed cautiously, consult your mentors, and always ensure a safety net before taking the plunge.