Nasdaq 100 Stalls Ahead of Critical NVDA Earnings
Nasdaq 100 Stalls Ahead of Critical NVDA Earnings
Also, 30-year T-note, copper, crude oil and Japanese yen futures
Nasdaq 100 E-mini futures (/NQ): +0.03%
30-year T-bond futures (/ZB): -0.38%
Copper futures (/HG): +0.40%
Crude oil futures (/CL): +0.28%
Japanese yen futures (/6J): -0.99%
All eyes are on today’s earnings announcement from artificial intelligence and chip maker darling Nvidia. U.S. equity indexes are largely unchanged at the open as investors brace for the report. Meanwhile, the Federal Reserve’s latest meeting minutes are on tap this afternoon.
Energy markets are mixed with oil down on demand concerns and natural gas making a rebound following yesterday’s losses. A government inventory report is in focus for oil traders today as geopolitical tensions in the Middle East move farther from traders’ minds.
Elsewhere, BuzzFeed (BZFD) is up over 60% in pre-market trading after former U.S. presidential candidate Vivek Ramaswamy reported a nearly 8% stake in the media company, igniting speculation in the stock.
Symbol: Equities | Daily Change |
/ESM4 | -0.14% |
/NQM4 | +0.03% |
/RTYM4 | -0.39% |
/YMM4 | -0.21% |
Equity markets fell this morning as investors awaited earnings from chip maker Nvidia (NVDA), expected after the bell today. That puts the tech-heavy Nasdaq contracts (/NQM4) in focus—which are unchanged ahead of the opening bell. The report marks perhaps the most important earnings of the season and will likely dictate investor sentiment through this week. S&P 500 futures (/ESM4) are selling after Target (TGT) reported an earnings miss, with consumer buying fewer discretionary items—a sign the U.S. consumer might be losing steam.
Strategy: (29DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 18,500 p Short 18,600 p Short 19,000 c Long 19,100 c | 13% | +1,450 | -550 |
Short Strangle | Short 18,600 p Short 19,000 c | 30% | +8,550 | X |
Short Put Vertical | Long 18,500 p Short 18,600 p | 57% | +635 | -1,365 |
Symbol: Bonds | Daily Change |
/ZTM4 | -0.07% |
/ZFM4 | -0.15% |
/ZNM4 | -0.24% |
/ZBM4 | -0.35% |
/UBM4 | -0.40% |
Long-term bond yields are under pressure this morning, with 30-year T-Bond futures (/ZBM4) down 0.40%. Bond selling picked up overnight after the United Kingdom reported a higher-than-expected rate of inflation for April, rising 3.9% from a year before. Today, the Treasury will auction off 20-year bonds, an event that could spark additional volatility in the Treasury market.
Strategy (30DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 115 p Short 116 p Short 119 c Long 120 c | 45% | +500 | -500 |
Short Strangle | Short 116 p Short 119 c | 59% | +1,265 | X |
Short Put Vertical | Long 115 p Short 116 p | 74% | +265.63 | -734.38 |
Symbol: Metals | Daily Change |
/GCM4 | -0.44% |
/SIN4 | -0.29% |
/HGN4 | -3.72% |
Copper (/HGN4) is sharply lower this morning, falling nearly 4%—the largest daily percentage decline since March 2023. The move lower comes after prices soared the past few months, making this move a likely profit-taking event. Meanwhile, the fundamentals for the metal remain rather strong, with artificial intelligence and decarbonization largely expected to create a supply deficit for at least the next few years.
Strategy (34DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 4.81 p Short 4.82 p Short 5.07 c Long 5.08 c | 21% | +200 | -50 |
Short Strangle | Short 4.82 p Short 5.07 c | 57% | +6,812 | X |
Short Put Vertical | Long 4.81 p Short 4.82 p | 58% | +125 | -125 |
Symbol: Energy | Daily Change |
/CLN4 | -1.21% |
/HOM4 | -1.15% |
/NGM4 | +0.04% |
/RBM4 | -1.48% |
Crude oil contracts (/CLN4) are down for a third straight day as U.S. oil demand remains subdued, according to the latest inventory report from the American Petroleum Institute (API). /CLM4 fell 1.21% ahead of the New York open. Today’s Energy Information Administration (EIA) report due out this morning is in focus.
Meanwhile, crude oil’s prompt spread—the difference between the current and next month’s contract—is near the lowest levels of backwardation since February, and crack spreads—the premium refiners pocket from turning crude into fuels—are also near February lows.
Strategy (26DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 75.5 p Short 75.75 p Short 79.5 c Long 79.75 c | 18% | +210 | -40 |
Short Strangle | Short 75.75 p Short 79.5 c | 50% | +4,280 | X |
Short Put Vertical | Long 75.5 p Short 75.75 p | 58% | +110 | -140 |
Symbol: FX | Daily Change |
/6AM4 | -0.27% |
/6BM4 | +0.15% |
/6CM4 | -0.13% |
/6EM4 | -0.16% |
/6JM4 | -0.23% |
Japanese yen futures (/6JM4) fell today despite recent talk from Japanese officials about the currency and its decline. The risk of another intervention is likely far off, with prices still firmly above the late-April intervention. Today’s FOMC minutes could be an important driver for broader dollar strength, which has been directing currency market movements for a while now.
Strategy (44DTE, ATM) | Strikes | POP | Max Profit | Max Loss |
Iron Condor | Long 0.0063 p Short 0.00635 p Short 0.00665 c Long 0.0067 c | 57% | +200 | -425 |
Short Strangle | Short 0.00635 p Short 0.00665 c | 65% | +625 | X |
Short Put Vertical | Long 0.0063 p Short 0.00635 p | 84% | +100 | -525 |
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.