Zooming, but not moving.

Earnings beats and sideways trading while volatility remains bid in ZM

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Setting the Table:

• After a week of blows, the market shook off early attempts to fade the rally and the SPX notched 70 bps of gains for a summer Monday. With equity volumes relatively lower, the market is taking its trend early in the day and sticking with it. There have not been the turn around days that we’re used to with rapidly moving inputs and new information.

  

• The options markets aren’t implying anything particularly special these days either. Below is a look at the 0DTE skew going into today compared to the average over the past 10 days. There is hardly any difference. Even with all of the potential from the Jackson Hole conference, markets are hardly spooked.

  

• Is NVDA the new TSLA?  Only one other equity name (non-ETF) has garnered this level of volume - over $100B in premium spent. The chip maker is riding the AI wave and investors are actively trading the options speculating on the boom or bust. Most of the trading has been concentrated in short dated options, so we’re seeing more opportunity capture rather than portfolio management.