SP500 LDN TRADING UPDATE 28/8/25

WEEKLY & DAILY LEVELS

***QUOTING ES1! CASH US500 EQUIVALENT LEVELS SUBTRACT ~15 POINTS***

WEEKLY BULL BEAR ZONE 6420/10

WEEKLY RANGE RES 6560 SUP 6400

DAILY BULL BEAR ZONE 6450/60

DAILY RANGE RES 6543 SUP 6426

2 SIGMA RES 6605 SUP 6370

VIX DAILY BULL BEAR ZONE 17.5

DAILY MARKET CONDITION - BALANCE 6502/6362

Balance: This refers to a market condition where prices move within a defined range, reflecting uncertainty as participants await further market-generated information. Our approach to balance includes favoring fade trades at the range extremes (highs/lows) while preparing for potential breakout scenarios if the balance shifts.

TRADES & TARGETS

LONG ON TEST/REJECT DAILY BULL BEAR ZONE TARGET DAILY/WEEKLY RANGE RES

SHORT ON TEST/REJECT DAILY/WEEKLY RANGE RES TARGET 6508

(I FADE TESTS OF 2 SIGMA LEVELS ESPECIALLY INTO THE FINAL HOUR OF THE NY CASH SESSION AS 90% OF THE TIME WHEN TESTED THE MARKET WILL CLOSE AT OR BELOW THESE LEVELS)

GOLDMAN SACHS TRADING DESK VIEWS

Positioning of options NVDA's earnings

The two-day straddles for NVDA suggest a potential movement of +/-6.2%, compared to an average realized movement of +/-5.9% observed during the last 8 earnings announcements. As of today's after-market hours, ETF options appear to be reflecting slightly higher than normal volatility for this upcoming event. 

Options Volume:

The trading volume of NVDA options remains high, comprising 12% of the overall single stock options volume. Although this percentage is down from the 45% volume recorded in June 2024, we believe that grasping options positioning is essential for evaluating the circumstances leading up to the earnings report.

Options positioning:

The normalized put-call skew for NVDA over a month indicates that investor positioning resembles levels seen prior to its earnings in May, but is notably lower than the heightened fear levels experienced in April.

SPX movements:

Straddles for SPX indicate a potential +/-0.8% movement in the next two days, which includes NVDA's earnings report, falling below the average implied movement of +/-1% noted ahead of the previous 8 NVDA earnings announcements.

ETF movements:

We provide insights on the top 20 ETFs historically known to exhibit significant movements on NVDA earnings days. Semiconductors and Technology ETFs lead the list and are generally anticipating a larger movement compared to past NVDA earnings.