Right. This next segment is brought to you by
CBO, the world's leading Derivatives and Securities Exchange Network
. Our reporter Courtney Sturgeon is standing by in Chicago
with Alan Chief Market strategist at Bulls Eye option.
Take it away. Courtney Chloe. Yes, we
have a busy week here at CBO and Allen.
You're going to give us the rundown. We've had
a very busy earning season. Good, not great
. But what else can you tell us where we
stand in 2023 especially after a record breaking year in
terms of volume last year? Well, 2023 has
been great. Almost every asset class has rallied and
that's been a positive with the dollar being down.
That's kind of the running running theme. So the
earning season we over they had very, very low
expectations. We will achieve 50% of the companies have
reported more than that now and we've got 80% that
beat their earnings estimates and 75% beat their revenue estimates
, which is really important because we have a revenue
increase of about 3%. So even though their earnings
are less, the revenues are increasing, that's very
positive. And can you tell us about certain sectors
, like the tech sector, we saw a lot
of earnings last week. What that meant for options
traders. I think that's a psychological issue is to
keep track of tech because tech got so badly beaten
up and we're 20 something percent off the lows right
now. So we still have a lot more upside
. But if you look at some of the big
name stocks, you've seen some major turn arounds in
the Tesla, the meta, the Apple, all
the big boys, nobody wanted to buy when they
looked bad. But now people get it that these
companies are cash cows and produce very, very well
. We have Apple coming out. The expectations are
very minimal for Apple. I think the option straddles
pricing in about a 4% measured move. So not
anything big, but you know, we'll know that
they're going to make billions and billions in pure profit
. Those straddle strategies and others. What can you
point to for options traders, especially this week with
so many announcements coming out? Well, what all
I try and do is use those straddles to gauge
how much of a move that the market is pricing
in and the market usually has it right. I'm
always a price guy. So that gives me an
expectation of what the move is. And now it
doesn't say whether it's going to be up or down
, but it's going to be X percent by looking
at that at the money straddle. So a lot
of times people don't trade earnings per se because that's
more of a gamble. You could be surprised.
You don't know how the market is going to react
. Even with positive numbers, you know, they
can have further guidance that might be negative. Who
knows? I'm an options trader for further out.
I buy 3 to 6 months options. So I
typically don't buy options the week of earnings because,
you know, have a binary event. I'll look
to buy some options that are three months away or
so after an earnings event. Ok. And a
big event coming up this afternoon, the fed announcement
, any insights or opinions about what we might see
with a potential hike there as we talked, I'm
not an opinion guy. I'm a price guy.
The markets are telling us there's going to a quarter
point, but the best part is we're at the
end of this rate height cycle, we're actually going
to see the markets are telling us we're going to
see a rate cut by year end. So this
is over. Now. I want to talk about
optimism and the fact that we're 15% off the all
time forever highs in the S AND P with all
of what's happened and how we've raised rates from 0
to 5%. So if you look at the S
and P, we're above 4000 for more than a
month now and it looks like we're ready to test
the top of this range and it's set up for
very positive possible moves here. Well, that's good
to hear that positivity from you all and thanks and
all of your insights as well. Thanks for being
here with us at CBO and I'm going to toss
it back to you Chloe Courtney Sturgeon. Thank you
so much for that interview. That's our reporter with
Ackman Chief Market strategist at Bulls Eye option. Now
to learn more about options, trading visit CBO dot 00:03:49.040 --> com.