Today is going to be one of the biggest earnings days of the year, so I’m going to be taking a look, in three separate posts, at three of the most monster-sized reports. The reactions, collectively, to these reports will help inform market direction overall, because the stocks are so significant.
We begin with Microsoft which, over the long haul, has created more millionaires and billionaires than just about any other company in existence. It’s been the bluest of the blue chips.
Over the past year, however, something big is brewing. Look how much options volatility has increased, particularly since November.
This is illustrated more vividly in the IV Rank data. Below is the One-Year Extremes chart, and options have become very rich lately, as the snare drum of uncertainty has been sounding loudly.
Simple soul that I am, this looks like an important potential top to me. It’s all about that horizontal line. The price value of $270. Break it, and all holy hell breaks loose too.
