Group 1 - M&T Bank Corporation (MTB) is experiencing significant activity in the options market, particularly with the Jan 16, 2026 $65.00 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have mixed views on M&T Bank, with one increasing earnings estimates for the current quarter while four have decreased theirs, resulting in a slight drop in the Zacks Consensus Estimate from $4.50 to $4.48 per share [3] Group 2 - The high implied volatility for M&T Bank could indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capitalize on decay, hoping the stock does not move as much as expected by expiration [4]

Core Viewpoint - Apple has shown a recent resurgence in its stock performance, aligning closely with the S&P 500 but still underperforming compared to its tech sector peers [2][10]. Stock Performance - Apple's stock is up approximately 13%, while the tech sector has increased by about 22.5% [2]. - The company was previously the worst performer among the MAG 7 group but has improved its standing with a recovery [2]. Technical Analysis - A rising wedge pattern is observed in Apple's stock chart, with recent all-time highs at 288.62 [3]. - Key support levels are identified at approximately 279 and 265, with a short-term trading range between 265 and 277 [4]. Moving Averages and Momentum - The 5-day EMA has declined, but the stock remains within the wedge pattern [5]. - The 21-day EMA is around 275, indicating potential support, while the RSI shows a slowdown in momentum, moving out of the overbought territory [5][6]. Expected Price Movements - An expected move of about 3.3% is projected for the upcoming December 19th, with a 6% move anticipated for January [7]. - A breakout above the 277 level could target around 295, aligning with the upper edge of the range and the plus two standard deviation channel [7]. Market Sentiment and Trade Strategy - Positive sentiment surrounds Apple, with Evercore ISI setting a price target of $320 [9]. - A bullish call vertical strategy is suggested, involving buying a 275 strike call and selling a 295 strike call, with a risk of approximately $800 per spread and a potential gain of up to $1,200 if the stock exceeds 295 [11][14]. Volatility Considerations - Implied volatility is currently low, at about 9%, which is in the bottom 10% of the past 52 weeks, making it a favorable environment for buying verticals [15][16].

Earnings Reports - Major companies such as Costco (COST), Broadcom (AVGO), Adobe Systems (ADBE), and Oracle (ORCL) are set to report their Q3 earnings this week [1] Implied Volatility - Implied volatility tends to be high before earnings reports due to market uncertainty, leading to increased demand for options [2] - After earnings announcements, implied volatility typically decreases to normal levels [2] Expected Stock Movements - Expected price movements for the stocks reporting this week are as follows: COST is expected to move 3.9%, AVGO 7.8%, ADBE 7.9%, and ORCL 10.9% [4] - Traders can utilize these expected moves to structure their trades, with bearish traders considering bear call spreads and bullish traders looking at bull put spreads or naked puts [4] Trading Strategies - Neutral traders may consider iron condors, ensuring that short strikes are outside the expected range [5] - It is recommended to use risk-defined strategies and maintain small position sizes when trading options over earnings [5] High Implied Volatility Stocks - A stock screener can identify stocks with high implied volatility, with filters including total call volume greater than 5,000, market cap over 40 billion, and IV rank above 40% [6][7] Recent Earnings Moves - Last week, CRDO saw a price increase of 10.1% compared to an expected 17.3%, while MDB increased by 22.2% against an expected 13.3% [9]

Core Viewpoint - Investors in Equinix, Inc. (EQIX) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Dec 19, 2025 $400.00 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for Equinix options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Equinix holds a Zacks Rank of 3 (Hold) within the REIT and Equity Trust - Retail industry, which is positioned in the top 31% of the Zacks Industry Rank [3] - Over the past 60 days, there has been a mixed sentiment among analysts, with one increasing earnings estimates for the current quarter while five have decreased theirs, resulting in a consensus estimate drop from $9.37 to $9.11 per share [3]

Core Viewpoint - Investors should closely monitor F&G Annuities & Life, Inc. due to significant implied volatility in the options market, particularly for the Dec 19, 2025 $20.00 Put option [1] Company Analysis - F&G Annuities & Life currently holds a Zacks Rank 1 (Strong Buy) in the Life Insurance Industry, which is positioned in the bottom 42% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised the earnings estimate for the current quarter, resulting in a consensus estimate increase from $1.12 per share to $1.40 per share [3] Options Market Insights - The high implied volatility suggests that options traders anticipate a significant price movement for F&G Annuities & Life shares, potentially indicating an upcoming event that could lead to a major price change [2][4] - Seasoned options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Group 1 - Investors in Equinor ASA (EQNR) should monitor the stock due to significant movements in the options market, particularly the Dec. 19, 2025 $15 Call, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting potential for a significant rally or sell-off [2] - Equinor currently holds a Zacks Rank 3 (Hold) in the Oil and Gas - Refining and Marketing industry, which is in the top 37% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, no analysts have increased earnings estimates for Equinor for the current quarter, while one analyst has decreased the estimates, lowering the Zacks Consensus Estimate from 78 cents to 75 cents per share [3] - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility [4]

Core Viewpoint - Investors in AptarGroup, Inc. (ATR) should closely monitor the stock due to significant implied volatility in the options market, particularly for the Dec 19, 2025 $140.00 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movement, with high levels suggesting a potential significant move or an upcoming event that could lead to a rally or sell-off [2] - The current high implied volatility for AptarGroup shares suggests that options traders anticipate a substantial price movement [3] Group 2: Analyst Sentiment - AptarGroup currently holds a Zacks Rank 5 (Strong Sell) in the Containers - Paper and Packaging industry, which is in the bottom 7% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while three have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $1.43 to $1.29 per share [3] Group 3: Trading Strategy - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility to capture decay [4] - Seasoned traders typically hope that the underlying stock does not move as much as initially expected by the expiration date [4]

Core Insights - Snowflake has shown strong performance, up approximately 47.5% over the past year, significantly outperforming the tech sector and the S&P 500 [2] - The stock is currently positioned between notable price levels, with a best close at 271.26 and a gap opening around 253, indicating potential areas of interest for traders [4] - The Relative Strength Index (RSI) is improving, indicating bullish momentum, while volume profiles suggest significant trading activity around 245 and 270 [5] Technical Analysis - The stock has broken its upward trend line and is now in a range between two key price areas, suggesting a period of consolidation [3] - Moving averages indicate critical support levels, with the 21 and 5-day exponential moving averages intersecting around 253, and the 63-day EMA at approximately 244 [4] - The bullish call diagonal strategy proposed involves buying December 19th 260 strike calls and selling December 5th 285 strike calls, taking advantage of volatility dispersion [8][9] Options Strategy - The proposed options strategy is a bullish call diagonal with a $25 width, requiring a debit of approximately $12.50, with profitability expected above 265 [10][12] - The strategy capitalizes on the difference in implied volatility, with the December 19th calls at 73% and the December 5th calls at 130%, allowing for potential rolling of the short option as expiration approaches [11] - The apex of profitability is anticipated around a one standard deviation move of approximately $23, indicating a bullish outlook for the stock [12]

Core Insights - Investors should closely monitor Arcutis Biotherapeutics, Inc. (ARQT) due to significant movements in the options market, particularly the Jan 16, 2026 $5 Put which has high implied volatility [1] Company Overview - Arcutis Biotherapeutics is currently rated as Zacks Rank 2 (Buy) in the Medical - Biomedical and Genetics industry, which is in the top 34% of the Zacks Industry Rank [3] - Over the past 60 days, the Zacks Consensus Estimate for the current quarter has shifted from a loss of 5 cents per share to earnings of 2 cents [3] Options Market Analysis - The high implied volatility in Arcutis Biotherapeutics shares indicates that options traders are anticipating a significant price movement, which could be due to an upcoming event that may lead to a rally or sell-off [2][4] - Options traders often seek out high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Group 1 - Investors in Bridgewater Bancshares, Inc. (BWB) should monitor the stock due to significant activity in the options market, particularly the Jan 16, 2025 $10.00 Put, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Bridgewater Bancshares currently holds a Zacks Rank 3 (Hold) in the Banks - Northeast Industry, which is in the top 26% of the Zacks Industry Rank, with no analysts increasing their earnings estimates for the current quarter and one analyst revising it downwards, leading to a consensus estimate decrease from 44 cents to 42 cents per share [3] Group 2 - The high implied volatility for Bridgewater Bancshares may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay, hoping the stock does not move as much as expected by expiration [4]