JEPQ - JEPQ: Muted Implied Volatility Augers For Direct Nasdaq 100 Exposure (Rating Downgrade)
2024-05-23 17:55:50 ET
Summary
- NVIDIA's first quarter EPS report exceeded expectations, leading to a 10% increase in shares and a collective sigh of relief among investors, resulting in a 4-year low in Nasdaq 100 volatility.
- Selling options on the Nasdaq 100 is now less compelling given low premium values.
- I now favor owning QQQ outright versus being long the JEPQ covered call ETF.
- I outline key price levels to watch heading into the summer.
Investors weren't exactly biting their nails ahead of NVIDIA Corporation's ( NVDA ) Q1 earnings report . There was plenty of optimism as shares neared all-time highs in advance of the most anticipated first-quarter EPS report of the season. The options market, according to data from Options Research & Technology Services (ORATS), is priced in an 8.3% earnings-day stock price swing....
JEPQ: Muted Implied Volatility Augers For Direct Nasdaq 100 Exposure (Rating Downgrade)