Core Viewpoint - The dollar is weakening while markets anticipate increased fiscal stimulus in Japan following the recent election results, which may influence the USDJPY exchange rate [1] Group 1: Currency Market Dynamics - The USDJPY is currently at 156, reflecting a 0.8% decline in the dollar against the yen [1] - The WSJ Dollar Index has decreased by 0.6%, indicating a broader weakening of the dollar [1] Group 2: Market Predictions and Risks - Goldman Sachs' Karen Fishman predicts that implied volatility will rise, with expectations for the USDJPY to move "towards and through 160" [1] - There is an elevated risk of intervention in the currency market as the dollar weakens, which may lead to cautious market behavior [1]

Earnings Reports - A significant week for earnings with major companies such as Robinhood Markets, Coinbase, Cisco Systems, Applovin, Shopify, Arista Networks, Cloudflare, Spotify, Airbnb, and McDonald's scheduled to report [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 [3] Expected Price Movements - The expected price range for stocks can be estimated by adding the prices of at-the-money put and call options from the option chain [3] Daily Earnings Expectations - Tuesday: HOOD (11.7%), F (6.5%), KO (2.9%), NET (13.4%), SPOT (10.4%), GILD (5.5%) [4] - Wednesday: CSCO (5.5%), VRT (10.5%), APP (15.5%), SHOP (12.8%), MCD (3.3%) [5] - Thursday: COIN (11.1%), ANET (10.7%), ABNB (8.6%), AEM (6.9%) [5] Trading Strategies - Traders can utilize expected moves to structure trades, with bearish traders selling bear call spreads and bullish traders selling bull put spreads or looking at naked puts [6] - Neutral traders may consider iron condors, ideally keeping short strikes outside the expected range [6] Risk Management - It is advisable to use risk-defined strategies and maintain small position sizes when trading options over earnings [7] - A full loss from a trade should ideally not impact the portfolio by more than 1-3% [7] High Implied Volatility Stocks - Barchart's Stock Screener can identify stocks with high implied volatility, using filters such as total call volume greater than 5,000, market cap greater than 40 billion, and IV Rank greater than 50% [8]

Core Viewpoint - Investors in Metropolitan Bank Holding (MCB) should closely monitor stock movements due to significant implied volatility in the options market, particularly the Feb. 20, 2026 $60 Put option [1] Company Analysis - Metropolitan Bank is currently rated as Zacks Rank 1 (Strong Buy) in the Banks - Northeast industry, which ranks in the top 24% of the Zacks Industry Rank [3] - Over the last 60 days, one analyst has raised earnings estimates for the current quarter, while none have decreased their estimates, resulting in an increase of the Zacks Consensus Estimate from $2.17 per share to $2.35 [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Metropolitan Bank shares, indicating potential upcoming events that could lead to a rally or sell-off [2][4] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the underlying stock does not move as much as expected [4]

Core Viewpoint - Investors in Hess Midstream LP (HESM) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Feb. 2, 2026 $43 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting anticipation of significant price changes or upcoming events that could lead to a rally or sell-off [2] - Options traders often seek 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 2: Analyst Sentiment - Hess Midstream currently holds a Zacks Rank 3 (Hold) in the Energy and Pipeline - Master Limited Partnerships industry, which is in the top 39% of the Zacks Industry Rank [3] - Over the past 60 days, two analysts have raised their earnings estimates for the current quarter, while none have lowered them, resulting in a slight decrease in the Zacks Consensus Estimate from 68 cents to 65 cents per share [3]

Core Viewpoint - Arm Holdings PLC (ARM) shows moderately bullish activity with shares increasing by $1.94, or 1.84%, reaching approximately $107.30 [1] Options Activity - Options volume is relatively light with 15,000 contracts traded, and calls leading puts, resulting in a put/call ratio of 0.22, significantly lower than the typical level of 1.61 [1] - Implied volatility (IV30) has increased by 0.4 points to around 61.46, which is above the 52-week median, indicating an expected daily price movement of $4.15 [1] - The put-call skew has steepened, reflecting heightened demand for downside protection [1] Earnings Outlook - Arm Holdings PLC (ARM) is scheduled to report earnings after the market closes on February 4, 2026 [1] - The options market is pricing in a 50% probability of a price movement exceeding 9.71%, equating to $10.42 [1]

Core Viewpoint - Investors in Elevance Health, Inc. should closely monitor stock movements due to significant implied volatility in the options market, particularly the Mar 20, 2026 $460 Put option [1] Company Analysis - Elevance Health currently holds a Zacks Rank of 4 (Sell) within the Medical Services industry, which is positioned in the bottom 26% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while seven analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $10.79 per share to $10.35 [3] Options Market Insights - The high implied volatility surrounding Elevance Health shares suggests that options traders anticipate a significant price movement, indicating potential trading opportunities [4] - Seasoned options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the underlying stock does not move as much as expected [4]

Core Viewpoint - Investors in AMC Networks Inc. should closely monitor stock movements due to significant implied volatility in the options market, particularly for the Jun 18, 2026 $2.5 Put option [1] Company Analysis - AMC Networks currently holds a Zacks Rank 3 (Hold) in the Broadcast Radio and Television industry, which is positioned in the top 29% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised the earnings estimate for the current quarter, while no analysts have lowered their estimates, resulting in an increase in the Zacks Consensus Estimate from 10 cents per share to 50 cents [3] Options Market Insights - The high implied volatility suggests that options traders anticipate a significant price movement for AMC Networks shares, indicating potential trading opportunities [1][4] - Seasoned options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the underlying stock does not move as much as expected [4]

Group 1 - The VIX Index has closed at 16.35, indicating a return to low volatility levels not seen since 2025, making options cheaper and prompting interest in stocks with low IV Percentile for Long Straddle trades [1] - Bank of America (BAC) is identified as a strong candidate for a Long Straddle trade due to its low IV Percentile [2] - A Long Straddle is an advanced options strategy that profits from significant price movements in either direction or an increase in implied volatility, requiring the purchase of both a call and a put option on the same underlying stock [3][4] Group 2 - The Long Straddle strategy involves upfront payment of two premiums, which represents the maximum possible loss, while the potential profit is theoretically unlimited [4] - For BAC, the Long Straddle setup includes buying a $50-strike call and a $50-strike put with a total premium of $533, which is also the maximum loss; the lower breakeven price is $44.67 and the upper breakeven price is $55.33 [5] - Changes in implied volatility significantly affect the trade and breakeven prices, with a stable stock price leading to losses due to time decay; a stop loss is typically set at around 20% of capital at risk, approximately $165, with a profit target of around 40% [7]

Core Viewpoint - Investors in MKS Inc. should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Apr 17, 2026 $185 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future stock movement, with high levels suggesting potential significant price changes or upcoming events that could impact the stock [2] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the stock does not move as much as anticipated [4] Group 2: Analyst Sentiment - MKS is currently rated as a Zacks Rank 1 (Strong Buy) in the Electronics - Miscellaneous Products industry, which is in the top 33% of the Zacks Industry Rank [3] - Over the past 30 days, five analysts have raised their earnings estimates for MKS for the current quarter, increasing the Zacks Consensus Estimate from $2.25 to $2.45 per share [3]

Core Viewpoint - Investors in Theravance Biopharma, Inc. (TBPH) should closely monitor the stock due to significant movements in the options market, particularly the March 20, 2026 $10 Put option which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future stock movement, with high levels suggesting anticipation of a significant price change or an upcoming event that could trigger a rally or sell-off [2] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the stock does not move as expected [4] Group 2: Analyst Sentiment - Theravance Biopharma currently holds a Zacks Rank 3 (Hold) within the Medical – Drugs industry, which is in the top 39% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased earnings estimates for the current quarter, while one has decreased them, resulting in a drop in the Zacks Consensus Estimate from 46 cents per share to 44 cents [3]