To The Moon

Zero-day expiration (0DTE) options, also known as same-day expiration options, are options contracts that expire on the same day they are traded.  This concept has been expanded: options expiring that week can also be counted as 0DTE.Advantages of 0DTE Options0DTE’s advantages and disadvantages are the two sides of the coin. It can amplify the P/L in very short time.You can read this article to learn about how Shirley gained 10000% in her 0DTE options Interview with Shirley | Nearly 10000% Gains in One Night.Potential for Quick Profits: 0DTE options can offer the potential for rapid and substantial profits if the underlying asset moves in the desired direction shortly after the trade is executed.Reduced Time Decay:

The U.S. Federal Reserve kicks off a two-day policy meeting on Tuesday with officials widely expected to keep interest rates on hold for now, but also flagging in new economic projections whether they feel rates still need to rise further before the end of the year.A new policy statement and interest rate decision will be released at 2 p.m. EDT (1800 GMT) on Wednesday, with Fed Chair Jerome Powell scheduled to hold a press conference at 2:30 p.m. to elaborate.As of today, it appears that market expectations for this meeting are minimal. In fact, Fed funds futures point to a 0.8% probability, equating to no rate hike this week. The chances of a rate hike at the upcoming meeting are also slim, with the probability of a 25 basis point hike in November now at 32 percent and a December rate hik

Apple's special event will be held at 1 am SGT on September 13, when it is expected to officially launch Apple's new iPhone 15 series and a series of new terminal products. This new phone release may become the most important catalyst for Apple stock in the near future. Apple shares plummet! Will the stock price rebound after the iPhone 15 launch?Let's take a look at the historical data of Apple's stock price before and after previous events.According to the past 10 years of data, Apple's stock price may not rise on the day of the event, and the intraday volatility is extremely high. The chart below shows the stock price performance before and after Apple’s Event in the past 10 years:On Septem

Artificial intelligence (AI) chip leader Nvidia $NVIDIA Corp(NVDA)$ will report second-quarter earnings after the U.S. stock market on Wednesday (23), and investors expect Nvidia's revenue in the quarter to beat expectations, and shares rose 5% on Monday.Wall Street expects Nvidia's revenue to grow about 110 percent to $12.5 billion in the current quarter, according to Refinitiv data. Nvidia has missed earnings estimates only once in the past two years. Citigroup analysts last week estimated Nvidia's revenue for the current quarter at only about $12 billion, but brokerages expect that to rise to $14 billion.After Nvidia estimated second-quarter revenue growth of more than 50 percent in May this year, its 12-month forward PE surged to more than 80

The selloff came after Fitch Ratings downgraded U.S. government debt from AAA to AA+ on Aug.1. All three major U.S. Indexes struggled last week, with the $S&P 500(.SPX)$ and the $NASDAQ(.IXIC)$ lost more than 2%, each.On Aug. 8, Moody's cut credit ratings of several small to mid-sized U.S. Banks, and said it may downgrade some of the nation's biggest lenders, warning that the sector's credit strength will likely be tested by funding risks and weaker profitability.Some market participants were concerned the signal could spell more trouble for markets ahead, but others say the pullback is expected given the extraordinary rally in equities this year.Option hedging strategies work best if you're already

$Microsoft(MSFT)$ Microsoft is scheduled to report earnings on 25-Jul-2023. The last time Microsoft reported earnings on 25-Apr-202, the stock decreased by 7.2%.As you can see from the table below, MSFT shares have moved higher in the immediate aftermath of earnings 6 out of 12 previous reports. Based on the previous 12 earnings releases, MSFT is more likely to trade higher 1 day after earnings for an average gain of 0.6%. The absolute average return in the one week before earnings was ±3.1%. With an absolute average return of ±3.9% on earnings day.How Non-Directional Option Strategies Have Performed Around Earnings:MSFT last reported earnings on Apr 25, 2023 AMC.The options prices predicted a±4.2%post earnings move, compared to a+7.2%actual move.

Major U.S. banks, such as JPMorgan Chase, Wells Fargo, and Citigroup, will commence reporting their second-quarter results on July 14. Heading into the earnings season for the second quarter, banks are faced with low expectations as earnings have yet to make a significant recovery since the eruption of the regional banking crisis in March. The prevailing market sentiment towards bank stocks is excessively negative, but robust net interest income will likely surprise investors and offset the weakness in capital markets.US banking stocks have been among the best-performing sectors in the past week, indicating that investors may be positioning themselves for a positive earnings and outlook surprise from US banks. The future performance of US banks largely depends on whether the U.S. economy e

The gravity-defying bull market is handing stock investors a fresh conundrum as an unusually big pile of options expires Friday: Chase gains via bullish derivatives or hedge with bearish bets?It’s a decision traders face every month, but the stakes are higher this time. About $4.2 trillion of contracts tied to stocks and indexes are scheduled to mature, according to an estimate by Rocky Fishman, founder of derivatives analytical firm Asym 500. That’s 20% more than a year ago.The event known as OpEx generally sees Wall Street managers either roll over existing positions or start new ones. This month it also happens to coincide with the quarterly expiration of index futures and the rebalancing of benchmark indexes including the S&P 500. The process is ominously dubbed triple witching and

A bull spread consists of a buy leg and a sell leg of different strikes for the same expiration and same underlying contract.This strategy will pay off in a rising market, also known as a bull market, that is why it is referred to as a bull spread.Bull spreads can be constructed from either going long a call spread or going short a put spread.Put Bull SpreadsBull spreads can be constructed from selling a put spread.  Selling a put allows you to collect a premium that you can keep if the underlying futures contract finishes at or above the strike price.A trader believes that the market will have a moderate rise before the options expire. If the underlying market was trading at 100, we can sell the 110-105 put spread. This would entail selling the 110 puts and buying the 105 puts which

A year after being shaken awake by an ultra-aggressive Federal Reserve, the stock market has gone back to sleep. Analysts trying to explain how it happened say dynamics in derivatives trading may be playing a role.While cooling inflation and better-than-feared earnings have helped promote calm in a market less vulnerable to valuation shocks after last year’s declines, fresh research is being published almost daily into how newly popular varieties of stock options act as forces for and against equity volatility.The latest to weigh in are strategists at JPMorgan Chase & Co., who argue that the interplay of zero-day stock options — fast-expiring contracts whose use exploded in the last year — and more conventional longer-dated ones is combining to dampen big and decisive moves in the broa