Weekly roundup: Market volatility and earnings ahead
Last week, the U.S. stock market saw some wild swings, with the $NASDAQ 100 Index (.NDX.US)$ down 2.31% and the $S&P 500 Index (.SPX.US)$ falling 1.5%. However, it wasn’t all bad news—on the flip side, the $Russell 2000 Index (.RUT.US)$ managed a 1.1% rise. The rollercoaster ride was mostly fueled by tariff concerns and broader worries about the economy slowing down, making for a tough week for many investors.
"Volatility is often a symptom of risk, but is not a risk in and of itself. Volatility obscures the future, but does not necessarily determine the future." - Peter Bernstein
The junk bond market was initially rattled after the tariff shock on April 2, with spreads jumping up to 4.61%. But things have started to calm down, as the spreads have narrowed to 4.14%, showing that investor nerves are settling. While the junk bond market is still somewhat cautious, some analysts are suggesting it could be time to start watching the space for potential opportunities, as risk sentiment gradually returns.
Jerome Powell stated that the Fed remains patient, focusing on inflation while acknowledging that tariffs could hurt both inflation and job growth. Powell’s comments were more hawkish on inflation than growth, which led to some stock dips as traders digested the news. While rate hikes are off the table for now, traders are now expecting potential rate cuts starting in June, which could be a big win for rate-sensitive assets.
Despite the ups and downs, the market wrapped up the week with a "slight bounce back". As always, our mooers have been busy sharing their insights, strategies, and the lessons they learned from the past week’s rollercoaster. Here’s a look at some of the standout contributions from the community this week.
💡 Options Features Insights
@Sadrick gave an in-depth guide on how to track unusual option trades with Moomoo’s Unusual Activity feature. Using examples from $Invesco QQQ Trust (QQQ.US)$ and $SPDR S&P 500 ETF (SPY.US)$, he demonstrated how to spot institutional trades that could offer insight into big-money moves. He recommended setting alerts and using the feature to stay ahead of major institutional plays. Read more>>
@0xdylan provided a comprehensive explanation of $CBOE Volatility S&P 500 Index (.VIX.US)$ and its role during times of market panic. He described how $CBOE Volatility S&P 500 Index (.VIX.US)$ tends to spike during extreme sell-offs (like the one on April 4th, when $S&P 500 Index (.SPX.US)$ dropped by nearly 6%). He also shared strategies on using volatility ETFs, emphasizing that while they offer quick gains, they are unsuitable for long-term holdings due to value decay. Read more>>
@约翰の理财库 raised a fascinating point about potential information trading surrounding $NVIDIA (NVDA.US)$ ahead of the U.S. government’s announcement. Just before news broke about a ban on $NVIDIA (NVDA.US)$’s H20 chip exports to China, a significant $7 million put option trade was executed on $Invesco QQQ Trust (QQQ.US)$. Despite no public headlines at the time, the unusual spike in put volume and the subsequent drop in call volume raised questions about whether the trade was a calculated setup. Read more>>
🚨 Market Volatility & Strategies
@The Warlock capitalized on $SPDR S&P 500 ETF (SPY.US)$ puts, raking in +14,470.50 USD. Despite the market's wild swings, his trade proved to be a well-timed success. Read more>>
@GG WP took advantage of the volatility in $NVIDIA (NVDA.US)$ puts, marking an unrealized P&L of +290.31%. Read more>>
@OngHakhowzer made a strategic call option purchase during a crash, waking up to a +3,400 USD gain on his $NVIDIA (NVDA.US)$ position. His ability to seize the moment was a great example of trading on market dips. Read more>>
@Orhan shared a successful strategy with $SPDR S&P 500 ETF (SPY.US)$ options, emphasizing the importance of not getting too greedy with 0DTE (zero days to expiration) options. Read more>>
@104744589 used a short-term $NVIDIA (NVDA.US)$ put option to earn some quick profits, reminding us that small wins add up. Read more>>
@Smalltimeplayer navigated the current volatility by selling $NVIDIA (NVDA.US)$ and $Advanced Micro Devices (AMD.US)$ stocks, then implementing a wheel strategy with cash-secured puts. Read more>>
@TWeiT stayed optimistic on $XPeng (XPEV.US)$’s future with a call option, capitalizing on China’s growing auto industry despite a challenging tariff situation. Read more>>
@Invest with 8268 posted a solid +507.5 USD gain from a $Taiwan Semiconductor (TSM.US)$ put trade following the company's earnings report. Read more>>
@见好就收袋袋平安 made an impressive +3,181 USD from $Tesla (TSLA.US)$ puts, along with an unrealized +4,755 USD from $NVIDIA (NVDA.US)$, showcasing a well-diversified options strategy. Read more>>
@GoldenAA also embraced the volatility in $NVIDIA (NVDA.US)$, recording a +75.22% unrealized profit on his call options. Read more>>
@By Law Siao Hai 小海 made a successful 5-minute trade on $Invesco QQQ Trust (QQQ.US)$, securing a +850 USD profit, showing that sometimes quick, short-term trades can pay off. Read more>>
@bull or broke locked in a +345 USD gain with a well-timed $Apple (AAPL.US)$ put, showcasing his quick decision-making skills. Read more>>
@wLwL✅ made a smart move with $NVIDIA (NVDA.US)$ covered stock, securing +1,688.50 USD in profit, a reminder of the power of covered calls in volatile markets. Read more>>
🧪 Testing the Long Strangle Strategy
@CNNT shared an experiment with the Long Strangle options strategy after the Option 101 workshop. She chose 3 stocks expected to have high volatility over the next 40 days and bought both a call and a put option. The strategy involved setting a small deviation from the market price for a low-cost test. Read more>>
📓 Trading diaries
@ひな☆彡 くまちゃん shared his thoughts on $NVIDIA (NVDA.US)$, preparing for the upcoming volatility with put options, forecasting a potential drop based on Moomoo AI's analysis suggesting a double top. Read more>>
@Mai Hiam la Bro introduced his "Precision Chop Zone Strategy," a tactical approach for slow, choppy days when $NVIDIA (NVDA.US)$’s price hovers within tight ranges. His advice? Don't chase, but focus on small, well-timed scalps for modest profits, avoiding emotional trading in chop zones. Read more>>
@Avengers 2023 demonstrated a "perfect" intraday trade on $Tesla (TSLA.US)$, buying at the lows and selling at the highs, capturing a clean profit within a single day’s market moves. Read more>>
@EvaGeo shared a successful earnings trade on $UnitedHealth (UNH.US)$, earning a solid profit by correctly betting on the direction of the stock’s movement post-earnings release. Read more>>
As we wrap up last week’s roundup, this week’s focus shifts to key data and earnings reports that could drive market movements.
Key data to watch:
Let’s Keep the Conversation Going!
We’re a community of learners and strategists. As we head into another week, let’s continue to share and grow together:
💬 What lessons have you learned from last week’s market movements?
💬 Which strategies from our fellow mooers resonated with you?
💬 How are you positioning yourself this week?
🎁 Leave your answers below to earn 100 moo points!
🗓️ Before 23:59, April 27th (ET)
With the collective wisdom of the moomoo community and the tools at our disposal, we’re ready to tackle whatever comes our way. Let’s stay informed, trade smart, and make this week one to remember!
If you find this article useful, do not hesitate to tap ❤️, drop a 💬, and spread the wisdom! 🌟
Stay tuned for more, and happy trading! 🌟
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Discussing
Gold pullback! Another opportunity?
🎙️Discussion 1. With $Gold Futures (JUN5) (GCmain.US)$ pulling back from record highs and many institutions upping their price forecasts, w
Options Newsman
May 6 20:45
S&P 500's Put/Call Ratio Hits 5-Year Low: Fear Fades and Bottom Near?
JonSnow : Tariff and earnings ain't decoupled. If earnings are bad today, they can only be worse tomorrow.
Warren Buffed JonSnow : maybe already priced in continuously since april 2nd?
JonSnow Warren Buffed : The run from the dollar shows different
Warren Buffed JonSnow : maybe its purposely made to agitate US exports..n
JonSnow Warren Buffed : I would buy US products, just don't know which
Sadrick : Thanks for the mention, I think this week should have some volatility surrounding china's response to the US's tariffs placed and in a couple weeks time we'll have the fed funds rate release so that'll be smthn I'm looking out for more likely cuz Trump rlly wants those cuts.
Warren Buffed JonSnow : they r already rebranded.....maybe pistols
JonSnow Sadrick : Sure, then he should cancel tariffs and he would get them, you can't disrupt and expect at the same time business as usual
CaptainBoi JonSnow : Fr. This is hurting spending whcih hurts spending. Earnings look good rn, but won’t be in Q3 and Q4. Amercian Earnings are boosted on people spending more than they make. When people start saving things hit the fan.
CaptainBoi JonSnow : Even Us products consist of stuff made in China. An example: plastic.
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