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The Big Boys
Earnings season is officially in full swing as banks kicked us off last week, and now we head deeper into the reports as some major names in the Airlines, Healthcare, and Tech are set to be reporting this week. We will briefly list some popular and highly liquid names that could be of interest for some earnings plays, along with some charts that could give us an idea on how to deploy our favorite Earnings Strategies.
Probably the most notable of all the Earnings of the week, the recent large down move this past week has brought in even more IV than expected for this expiration cycle. Traders are pricing in an expected move of around $34 dollars by this Friday, with the Whisper Number having the stock beat by 8 Cents. IV Rank is 34 with high volume all up and down the strike prices. Will most likely be looking to take advantage of this IV by selling a large Iron Condor.
We have been speculating to the upside in Airlines and Cruiselines now for awhile, and the recent pullback has been hurting. Our basis off of this is that we cannot stay oversold forever, and the recent divergent rift between the Nasdaq and S and P’s should at some point invigorate these cyclicals and the growth stocks at some point before the coming “Black Swan” which everyone keeps talking about. (Based on lumber prices reverting back to their mean). Either way we are still holding true in our assumptions as the stochastics are looking up in AAL. We did close below the $20 level which was key, but perhaps the Earnings Catalyst can push us back up higher and keep us from the dreaded chop zone of 18.50 to 20. Traders are pricing in an expected move of $1.12 by this Friday, with most of the Call action coming in the weekly cycle on the 21.5 Call strike.
SNAP or as we like to call it, the Red Headed Step Child of Social Media, reports Earnings July 22nd after the Bell. Consensus has them reporting at -.01 with the Whisper Number being .01 to the good. It seems as though this younger generation does actually love SNAP but most usually forget about this app, now that Insta Reels and the Tik Tok superstars have took grasp of the modern Smart Phone. Numbers on the report would have to wow for a large move up but a large move down may be easier. Good news might be the recent sell off as investors may be looking here to load up on some longs, or at least play the Calls, as 21,000 at the 61 Strike were traded last Friday. The Key level of that 50% Fib was breached though, as that level along with the 50 Day SMA were key to the Stock having a swift recovery before the Report. We will definitely be keeping an eye on these levels going forward, as well as tracking the IV as the traders are expecting a move of $7 by Friday. This speculation seems to be largely overestimated, but this will work in our favor as we plan to roll out multiple Short Strangles in varying Expiration Cycles.
For a full list of upcoming Earnings visit Earnings Whispers Weekly Calendar
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