Get our free PDF to see the upcoming earning dates and their historical movements
Check out the next batch of earnings coming up over the next week! Some of the most notable include Advanced Micro Devices (AMD), Alphabet (GOOG/GOOGL), Microsoft (MSFT), Facebook/Meta (META), and Amazon (AMZN).
We looked back to 2018 to measure standard deviation and largest up/down moves after earnings.
Analyzing the Impact of This Week's Earnings on SPX and NDX Indices
It's a big week for earnings - but what does that mean for the market as a whole?
For the S&P 500 (SPX), roughly 28% of the index's weight is represented by companies reporting their earnings this week. We've analyzed how these earnings could potentially affect the market. The expected range of movement in the SPX, influenced by these reports, is estimated to be plus or minus 60 points.
An S&P 500 (SPX) level of 5000 is roughly at the higher end of this anticipated range! Who would have thought that was possible a few years ago?
The Nasdaq 100 is much heavier weighted at the top - with almost 35% of the weighting reporting earnings this week (including AMD which is just outside the top 10).
Two Trade Ideas
SPX Broken Wing Butterfly (FEB 2nd)
This is the biggest week for earnings - over 28% of the SP 500 weighting reports earnings this week. If they all move higher to the expected move - we'd have a $5000 handle next week. If you think thats a little lofty... but still could happen... a broken wing butterfly provides some added upside with no downside risk. Sticking with the FEB 2nd weeklies - long the 4960 call, short 2x the 4975, and long the 5010 trades at $2.50 with a breakeven right under $5000 and a chance at up to $1500 in added profit.
AAPL CRAB Trade (MAR/FEB)
The surprising laggard in the Mag 7, is there a catch up trade here with AMZN, GOOGL, MSFT, META, NVDA all at highs? If you think AAPL might see a bounce, a CRAB trade is a cheap way to get some long delta. Long the 190 call in MAR provides some positive gamma, with a FEB 2x/1x 200/210 call spread to add some positive decay.
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