The coming week brings many big tech earnings reports which include AAPL, AMZN, FB and GOOG. Based on the trading action in options it appears they are leaning to the long side of these markets.
Call buying in the AAPL, FB, and AMD are seeing heavy call buying. Naked option buying continues to increase keeping the VIX higher. Markets and Volatility were basically flat last week. There was some whipsaw in both directions only to leave the markets basically flat for the week.
With the election, a week away from other than the big earnings reports markets will probably remain somewhat neutral. Obviously trying to predict the next move is a fool’s game however the lean appears to be bullish.
Looking at the bigger picture markets are in the middle of the range for the last two months. What we are really seeing, the markets are preparing for a big move in either direction. Based on option pricing and volatility a slight edge to the upside. As always it takes discipline and patience to determine where they go next
by: Todd “Bubba” Horwitz ( Independent contributor to the ecosystem)