Big Picture

Health care reform appears to be dead in the Senate, the market has yawned probably having discounted the outcome already or possibly just not caring.  For the most part the market is focused on earnings.

Volatility Index Performance

The suite of volatility indexes calculated by CBOE finished last week at very low levels.  Despite this they were mixed yesterday with VXST leading to the upside.

Overnight / Pre-Market

Netflix (NFLX) hit a homer after the close and the stock up about 11% in pre-market trading.  Although impressive this is actually the average move the stock has experienced over the past three years (see table below).  Kevin Davitt from the Options Institute discussed NFLX on What’s Trading yesterday which can be viewed here -'s-trading-now-netflix-numbers-next-(nflx)

Bank of America (BAC) reported this morning.  The stock was down about 1% in early trading, but has rebounded a bit.

Goldman Sachs (GS) reported today as well.  The stock was a bit lower and the company reported slightly lower than expected trading revenues. 

Harley Davidson (HOG) reported in line, but forecasted lower sales for 2017, the stock is down almost 10% in reaction to the announcement.

Looking Forward

July VIX futures and options settle on the market open tomorrow.  This is also standard expiration week for July equity and index options. 

Things are very quiet with respect to CSX, IBM, and UAL are scheduled to report after the close while MS and UBS report before the open Wednesday.  The three-year historical price reactions to earnings appear in the table below – MC1

Major companies set to report later this week include AXP, QCOM, EBAY, and GE. 

CBOE Webcasts

July 19th at 3:30 Central – Dan Passarelli discusses Chart Reading for Option Traders

July 26th at 3:30 Central – Dan Sheridan discusses The 15-Day Butterfly in SPX

More information and registration at

Today in History

On July 18, 1936 the Oscar Meyer Wienermobile was introduced and was driven by “Little Oscar” around the country.  It was brought out of retirement in 1986 and was so popular Oscar Meyer decided to create a fleet of Wienermobiles and there are now six roaming the United States spreading the gospel of encased meats.