October ended with a bang, and now the market’s trying to pick up where it left off.

Stock futures were up early Monday, and while that’s not unusual after a strong monthly close, it’s the why behind the move that matters.

Investors were gearing up for a busy week packed with earnings from some of the biggest names in tech and pharma. 

One of the early ones on deck was Palantir (PLTR), which was set to report after the bell.

Analysts were forecasting quarterly earnings per share of $0.17 and revenue of more than a billion dollars.

By the time you read this, those projections probably will have tracked, but just understand that with stocks like this one, the bar is extremely high. Any slip in growth rate, margins, or guidance could trigger a sharp pullback.

Whatever shakes out, PLTR is an example of what to look out for right now. 

You’ve got rising market momentum, implied volatility ramping into earnings, and traders crowding into weekly contracts hoping for a quick home run.

That’s a cocktail for opportunity, but also a setup where rookies get burned if they don’t know what they’re doing.

Let’s break this down.

Volatility Is the Trade

Whenever a high-profile company like Palantir reports, the options market prices in movement, not direction. 

That means calls and puts are both expensive heading into the event, because the market expects something big.

But what most people miss is that after earnings, volatility collapses, even if the stock moves in your favor.

So buying options right before earnings is usually a sucker’s game, unless you’re really confident the move will blow past expectations.

Selling premium is often the smarter move into earnings, especially if the stock has a history of overpricing the expected move.

But don’t get greedy. 

If you’re selling premium, size small and close quick. One ugly headline and you’re playing defense.

Momentum Is Back, for Now

All three major U.S. indexes ended October strong. That’s got traders thinking we may finally see a year-end rally.

This kind of shift matters because it changes how you position trades.

Here’s what I’m watching:

• Short puts and bull put spreads on strong names that just crushed earnings or are about to report.
• These are bullish strategies that let you make gains even if the stock just chops or grinds higher.
• You don’t need a big breakout to profit. The market just has to not crash.

If you’re bullish this week, focus on names with rising momentum and increasing volume, including tech names riding the AI hype train or drugmakers tied to weight-loss or oncology breakthroughs.

Watch Volatility Closely

Keep your eye on the VIX. If it stays under 18, that’s fuel for the bulls.

But don’t fall asleep because this market still reacts fast to any Fed headline, Middle East tension, or inflation surprise.

Here’s a simple rule I use every earnings week:

• Be quick to take profits.
• If you’re up 30% to 50% on a weekly spread by Wednesday, take it.
• Greedy traders are the market’s favorite snack.

One Last Thing

You don’t need to be in every earnings trade. Just focus on the ones that line up with your edge.

Right now, the edge is in short-term premium selling and post-earnings trend riding, not guessing which way a coin flip lands after the bell.

Let the crowd chase headlines while you stick to what works. 

Stay street smart,
Jeff Zananiri