Company Overview - European Wax Center, Inc. (EWCZ) is currently experiencing significant attention in the options market, particularly with the Mar 20, 2026 $7 Put showing high implied volatility, indicating expectations of a substantial price movement [1] - The company holds a Zacks Rank of 2 (Buy) within the Cosmetics industry, which is positioned in the bottom 29% of the Zacks Industry Rank [3] Analyst Insights - Over the past 30 days, one analyst has raised the earnings estimate for the current quarter from 1 cent per share to 4 cents, with no downward revisions from other analysts [3] - The high implied volatility suggests that options traders are anticipating a significant price movement for European Wax Center shares, which could indicate a developing trading opportunity [4] Options Market Dynamics - Options traders often seek out options with high implied volatility to sell premium, a strategy that aims to benefit from the decay of option value over time [4]

Core Viewpoint - The earnings season is intensifying with major companies like Netflix, Intel, Johnson & Johnson, Freeport McMoran, and 3M Company set to report, indicating a pivotal week for stock movements [1] Earnings Reports and Implied Volatility - Implied volatility tends to be high before earnings reports due to market uncertainty, leading to increased demand for options and higher option prices [2] - After earnings announcements, implied volatility typically decreases to normal levels [3] Expected Stock Movements - The expected price range for stocks can be estimated by summing the prices of at-the-money put and call options, using the first expiry date after the earnings date [3] - Specific expected price movements for companies reporting this week include: - USB: 3.8% - FAST: 7.3% - MMM: 5.6% - NFLX: 7.7% - KMI: 2.8% - JNJ: 3.2% - SCHW: 4.8% - TFC: 6.2% - INTC: 8.7% - FCX: 5.3% - COF: 4.8% - PG: 3.8% - GE: 5.5% - SLB: 4.1% [4][5] Trading Strategies - Traders can utilize expected moves to structure their trades, with bearish traders potentially selling bear call spreads outside the expected range, while bullish traders may consider selling bull put spreads or naked puts [5] - Neutral traders might opt for iron condors, ensuring that short strikes remain outside the expected range [5] - It is advisable for traders to employ risk-defined strategies and maintain small position sizes to mitigate potential losses [6] High Implied Volatility Stocks - A stock screener can be used to identify stocks with high implied volatility, with filters set for total call volume greater than 5,000, market cap over 40 billion, and IV rank above 50% [7]

Core Viewpoint - Investors in Union Pacific Corporation (UNP) should closely monitor stock movements due to significant implied volatility in the options market, particularly the Feb 20, 2026 $150 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movements, 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 options value if the underlying stock does not move as expected [4] Group 2: Analyst Sentiment - Union Pacific currently holds a Zacks Rank of 3 (Hold) within the Transportation – Rail industry, which is positioned in the bottom 9% of the Zacks Industry Rank [3] - Over the past 30 days, one analyst has raised the earnings estimate for the current quarter, while three have lowered theirs, resulting in a decrease of the Zacks Consensus Estimate from $2.92 to $2.89 per share [3]

Company Overview - Gorilla Technology Group Inc. (GRRR) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jan 16, 2026 $2.50 Put option [1] Market Sentiment - The high implied volatility indicates that the market is anticipating a substantial price movement for Gorilla Technology shares, which could be driven by an upcoming event that may lead to either a rally or a sell-off [2][3] Analyst Ratings - Currently, Gorilla Technology holds a Zacks Rank of 5 (Strong Sell) within the Technology Services industry, which is positioned in the bottom 36% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from 41 cents per share to 30 cents [3] Trading Strategy - The high implied volatility may present a trading opportunity, as seasoned options traders often seek to sell premium on options with such volatility, hoping that the underlying stock does not move as much as anticipated by expiration [4]

Core Viewpoint - Investors should closely monitor Procter & Gamble's stock due to significant implied volatility in the options market, particularly for the Jan. 16, 2026 $85 Call option, which indicates expectations of a substantial price movement [1] Company Analysis - Procter & Gamble currently holds a Zacks Rank of 4 (Sell) within the Consumer Products – Staples industry, which is positioned in the bottom 20% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised earnings estimates for the current quarter, while three analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $1.88 to $1.87 per share [3] Options Market Insights - The high implied volatility surrounding Procter & Gamble suggests that options traders anticipate a significant price movement, which could indicate an upcoming event that may lead to either a rally or a sell-off [2] - 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 by expiration [4]

Market Overview - The crypto market experienced minimal volatility, with major CoinDesk indexes moving less than 1% since midnight UTC, while Bitcoin remains above $94,500, indicating a breakout from range-bound trading [1] - Zcash (ZEC), Aptos (APT), and Polygon (POL) saw slight declines, whereas Dash (DASH) surged by 15%, marking a 141% increase over the past week, highlighting a divergence between crypto and U.S. equities [2] Derivatives and Futures - Approximately $240 million in leveraged crypto futures bets have been liquidated, with market-wide futures open interest decreasing from $146 billion to $143 billion, suggesting a pause in demand for leveraged products [5] - Bitcoin's 30-day implied volatility is now averaging around 2.5%, while Ethereum's (ETH) implied volatility has dropped to its lowest since early 2024 [5] - ZEC's futures open interest fell by 14% in 24 hours, leading to capital outflows in major tokens, while Monero (XMR) saw an 8% increase in open interest [5] Trading Strategies - ZEC's annualized funding rates plummeted to -50%, indicating increased demand for bearish positions, which may lead to a potential short squeeze [5] - In the options market, a significant short position in Bitcoin's $112,000 call expiring on February 6 was noted, possibly part of a covered call strategy [5] - For Ethereum, block flows indicated a preference for the iron condor strategy, which profits from a range-bound market [5] Altcoin Performance - DASH's performance is seen as a positive indicator for the broader altcoin market, with Tezos (XTZ) also showing strength, rising by 8.3% [5] - The CoinDesk 80 Index (CD80) tracking a wider basket of altcoins is up by 0.68% since midnight, while the CoinDesk 20 (CD20) remains relatively unchanged, suggesting strength among altcoins during a consolidation phase [5] - Traders are monitoring the U.S. market open for potential volatility, especially as weekends typically experience low volume and liquidity [5]

Core Viewpoint - Investors in XP Inc. should closely monitor stock movements due to significant activity in the options market, particularly the Jan 23, 2026 $5 Call option which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movements, with high levels suggesting anticipation of a significant price change or an upcoming event that could lead to a rally or sell-off [2] - High implied volatility options are often targeted by traders looking to sell premium, as this strategy aims to benefit from the decay of option value if the stock does not move as expected [4] Group 2: Analyst Insights - XP is currently rated as Zacks Rank 3 (Hold) within the Financial - Miscellaneous Services industry, which is in the bottom 31% of the Zacks Industry Rank [3] - Over the past 30 days, one analyst has raised the earnings estimate for the current quarter from 44 cents per share to 45 cents, with no downward revisions from other analysts [3]

Core Viewpoint - Investors in BKV Corporation should closely monitor stock movements due to significant implied volatility in the options market, particularly for the Feb. 20, 2026 $20 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 BKV options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to benefit from time decay [4] Group 2: Analyst Insights - BKV currently holds a Zacks Rank 3 (Hold) in the Alternative Energy – Other industry, which is positioned in the bottom 35% of the Zacks Industry Rank [3] - Over the past week, the Zacks Consensus Estimate for BKV's current quarter earnings has increased from 27 cents per share to 32 cents per share [3]

Core Viewpoint - Investors in Evergy, Inc. should closely monitor the stock due to significant movements in the options market, particularly the March 20, 2026 $40 Call which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for 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] - High implied volatility in options can attract traders looking to sell premium, as this strategy aims to benefit from the decay of options value if the stock does not move as expected [4] Group 2: Analyst Sentiment - Evergy holds a Zacks Rank 2 (Buy) in the Utility - Electric Power industry, which is in the top 20% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised earnings estimates for the current quarter, increasing the Zacks Consensus Estimate from 50 cents per share to 60 cents [3]

Earnings Reports Overview - Earnings season is commencing with major banks and tech stocks reporting, including Bank of America, Taiwan Semiconductor, JP Morgan, Wells Fargo, Citigroup, Morgan Stanley, Goldman Sachs, and Delta Airlines [1] Implied Volatility Insights - 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 Stock Movements - Expected price movements for stocks reporting this week include: - Delta Airlines (DAL) - 6.8% - JP Morgan (JPM) - 3.8% - Bank of America (BAC) - 4.0% - Citigroup (C) - 4.5% - Wells Fargo (WFC) - 4.9% - Goldman Sachs (GS) - 4.4% - Morgan Stanley (MS) - 4.3% - Taiwan Semiconductor (TSM) - 5.3% - PNC - 3.8% [4][5][6] Trading Strategies - Option traders can utilize expected moves to structure trades, with bearish traders selling bear call spreads and bullish traders selling bull put spreads or considering naked puts [7] - Neutral traders may opt for iron condors, ensuring short strikes remain outside the expected range [7] Risk Management - It is advisable to employ risk-defined strategies and maintain small position sizes when trading options over earnings, limiting potential losses to 1-3% of the portfolio [8] Stock Screening for High Implied Volatility - A stock screener can identify stocks with high implied volatility, focusing on those with total call volume greater than 5,000, market cap over 40 billion, and IV rank above 40% [9][10]