Options Outlook for the Week of October 14: High Flyers Moving Very Well
Markets remain hampered under turmoil as many went for the overnight hold from Friday into this week, hoping the S&P 500 (NYSE: SPY) would hold at the 170 line.
Unfortunately, volatility has prevailed, causing a gap down 11.25 handles after Washington, D.C. could not come to an agreement. High flyers have been moving very well, the Amazon (NASDAQ: AMZN) Google (NASDAQ: GOOG), Priceline (NASDAQ: PCLN) and LinkedIn (NYSE: LNKD) names have all done well in pre earnings action.
Traders should look into playing one strike on-the-money (OTM) or selling decay on Thursday or Friday. Be sure to keep in mind that there are two headwinds, earnings and government shutdown.
Measured moves will be less and less sustainable with higher levels of volatility like this.
Check out the video below for a recap of this week's outlook.
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Tags: Sang Lucci