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.
NFLX had earnings today and the stock moved 17.00 dollars, rallying past 115. The straddle was pricing in a move of less than 10 dollars yesterday. Hey, surprizes happen...however NFLX has outperformed its earings straddle for 4 straight quarters, ever since they started producing their own content. Take a look:
www.livevol.com LivevolX (r)
We have another day like last week where the rally came from nowhere and is most likely not going to go anywhere. It feels like the algo driven market catches any new piece of news about the FOMC release and it is off to the races. The last 6 months has been about macro freight trains, collapse of the Euro, oil and commodity prices with a rocketing dollar. Greece isn’t even in the headlines anymore. As day went most stocks were up and VIX softened a bit before the Wednesday’s release.