In summary:
- S&P 500 E-Mini Futures reached a year-to-date high of about $4,600, with potential for new all-time highs if it surpasses resistance at $4,630 and $4,700.
- The $4,500 support level could be tested if the current bull run ends, possibly triggering another push toward all-time highs.
- Stock options can be beneficial after earnings reports to dodge binary volatility but exploit short-term fluctuations.
Top 10 Stocks To Watch
1. Uber – 8/1 – Before the Open
Uber Technologies Inc (NYSE:UBER)’s options market in August and September contracts is a couple pennies wide and offers a field to craft almost any assumption you might have. The product is small enough for a strangle position in smaller accounts.
Iron Condors and spreads will also set up well. August and September contracts can be used for earnings plays. It may be helpful to play earnings in August and roll out to September if you need to.
2. AMD – 8/1 – After the Close
Advanced Micro Devices, Inc. (NASDAQ:AMD), options market in August and September is pennies wide and offers the opportunity to form almost any options position you’d like to put on. Five- and 10-dollar wide iron condors and spreads set up well. Make your earnings play in August and roll out to September if you need to.
3. PayPal – 8/2 – After the Close
PayPal Holdings Inc (NASDAQ:PYPL)’s options market in August and September is pennies wide. An eighteen-delta short Strangle sets up well in August and September with a decent premium to buying power requirement ratio. Short thirty-delta Spreads also set up well if you have a directional assumption.
4. Shopify – 8/2 – After the Close
For Shopify Inc (NYSE:SHOP), short 17-delta Strangles set up well in August and September, with a good premium collected to buying power required ratio. Iron condors and spreads will also set up well if you’d like to define your risk going into an earnings play.
5. Amazon – 8/3 – After the Close
Amazon.com, Inc. (NASDAQ:AMZN)’s options market is very liquid and pennies wide in August and September. A liquid market like Amazon’s offers the opportunity to craft almost any type of options position you’d like create.
Calendar spreads are available if you’d like to take advantage of the difference in volatility between monthly contracts. Strangles, iron condors and spreads also set up well.
6. DraftKings – 8/3 – After the Close
DraftKings Inc (NASDAQ:DKNG) is a small enough product and has liquid enough markets for smaller accounts to consider an undefined risk position. However, be cautious because smaller underlyings tend to make bigger moves when they get going. At-the-money spreads also set up well for directional assumptions.
7. Rivian – 8/8 – After the Close
Rivian Automotive Inc (NASDAQ:RIVN) is a small enough product and has liquid enough markets for smaller accounts to consider an undefined risk position, but defining your risk in this production is probably a smart move.
Again, smaller underlyings tend to make bigger moves when they get going, and Rivian is primed for big directional moves in the current market environment. At-the-money spreads also set up well for directional assumptions.
8. Disney – 8/9 – After the Close
Walt Disney Co (NYSE:DIS) has a tight and liquid options market in August and September. A short 25 delta iron condor sets up well in September’s contract. The short Strangle in premium collected to buying power used ratio in August and September is a little low for me. At-the-money directional spreads set up well, too.
9. Target – 8/16 – Before the Open
Target Corp (NYSE:TGT)’s options market in August and September contracts is very liquid and about five pennies wide. A short 18-delta strangle and five-dollar wide iron condor sets up well in August and September contracts.
However, by the time Aug.16 rolls around for TGT earnings, the August contract will likely be too short term for an options play, unless you’re interested in a purely binary trade. If that is the case, I would define your risk.
10. NVIDIA – 8/23 – After the Close
NVIDIA Corp (NASDAQ:NVDA)’s options market in August and September are very liquid and tight. Nvidia is a relatively expensive product to trade, and that is true for its options as well. Defined risk strategies are likely the best option for most account sizes.
By the time Aug. 23 arrives, Nvidia’s August contracts will have already expired. That means you’ll need to do your earnings plays in September’s contracts. Short 17-delta iron condors set up well in September. Short twenty-two-delta spreads also set up well.
