Royal Caribbean (RCL) and Carnival (CCL), both key players in the cruise industry, currently seeing upward movements. Both up 9% week-over-week.

In contrast, Wynn Resorts (WYNN), a company in the closely related leisure and hospitality sector, is encountering notable declines (but it is up on today's move).  Down -8% week-over-week.

The Bond ETF (TLT), Biotech ETF (XBI), Utilities ETF (XLU), Mexico ETF (EWW), and Silver ETF (SLV) are currently exhibiting high levels of IV Rank, indicating an expectation of significant price fluctuations. Additionally, Gold Miners (GDX), Junior Gold Miners (GDXJ), and Biotech (XBI) are notable for their high levels of IV, further suggesting anticipated large price movements in these sectors.

Particularly noteworthy is Biotech (XBI), positioned in the top right corner, which displays one of the highest combinations of both high expected price movement (IV) and significant levels of historical IV movement (IV Rank), marking it as a sector with potentially substantial volatility.

Explore the past trends of some of the most traded stocks unveiling their earnings this week. Observe how these stocks have historically fluctuated around their earnings dates.

Download the reference sheet here.

As an Example, the historical price fluctuations of Palo Alto Networks (PANW) surrounding its earnings announcements over the past five years indicate that the standard deviation of overnight price movements around earnings is approximately ±7.6%. Additionally, there tends to be an average increase of about 4.2% after the release of earnings.

Download the reference sheet here.

We sent this out last week, but in case you missed it, we've put it out again.

How many shares of GLD are approximately equivalent to 1 /GC futures?  Find out with this handy downloadable cheat sheet.

Download last week's Cheat Sheet Here.

XBI Naked Put + Call Ratio Spread

Considering the ETFs on our list, XBI has one of the higher IV Ranks at 41. The ETF is comprised of mostly small and mid cap biotech stocks - which have moved in tandem with the Russell with a correlation near 0.75 over the last 3 months. If you think the small caps might catch up to the tech names, a slightly skewed long, short premium trade might would benefit from a contraction in volatility and an up move in the ETF. Short the 68 put near 52-week lows, to finance a call ratio spread 1x/2x 71/74.

XRT Call Diagonal Spread

Is it time to buy into the retail weakness? Over the next two weeks, we will get earnings reports out on TJX, M, ROST, URBN, ANF, and JWN which are all holdings in the XRT Retail ETF. If you think it is time for a bounce, the long call diagonal January 63 long call and the short December 65 call provides around 20 long delta for $1.29 debit. A cheap way to get 20 long delta in the retail space.

Behind the Scenes

Paul, who rarely misses arm day at the gym, hanging cable around the studio.  

Thanks to Ryan Sullivan for taking the picture.

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