Looking at IV's in the FANG stocks there is one major theme....they are STUPID CHEAP. If you can't find an option to buy, you are probably a jerk.
The only one I remotely don't want to own is NFLX. The rest look like steals.
So far this earnings cycle we have seen big wins in tech out of GOOG, NFLX, and no AMZN. Flops have come from AAPL, IBM, and MSFT. Take a look at the pricing of AMZN from today (now up about double the straddle price).
Livevol (r) www.livevol.com
AAPL just posted a big number and the stock is up $2 after rallying a couple of dollars today and many dollars for the week. I guess it is the big number that you have to print that counts. AMZN posted a giant revenue number last week but so far has been able to avoid accountability for actually ma
On the heals of last nights complete and utter annihalation of the FB straddle I thought it would be interesting to follow a few of the other big earnings plays. AMZN, which had a straddle that was below the average straddle price over the last year, saw its straddle go out 23 dollars. As I write this the stock is up 36 dollars from the close, and really, if one was trading the straddle this morning, the 300.00 straddle went out a massive 24 dollar winner, a full 100% return on the straddle bet. Increadible.
I have been discussing what I call the 'LOVED STOCK' earnings chart over the last few days. This is a pattern where an AMZN, NFLX, or FB rallies in anticpation of earnings. The stock then gets sold out of earnings as it disappoints traders. Finally, within a couple of days of the sell off the stock begins to rally again earasing some of the losses from earnings. The only stocks that are 'loved' that did not show this pattern so far is TWTR.
With FB appearing to create this pattern and FB IV in the dump (See chart)