Top 10 Stocks to Watch: July 2024

The expected move is $5,690 to the upside and about $5,415 to the downside from the current price of $5,552

• Price action remains bullish with buyers quickly reversing dips in price.
• Significant changes in market sentiment would have to occur for sellers to take over.
• If we do see selling pressure in July, it is likely to be a slow list downward met with spikes of buying pressure.

Market update: S&P 500 E-mini futures up 10.56% year-to-date 

Since our last update, the market has continued to rally. In June, the S&P 500 set new all-time highs week after week. Price moved to the upside beyond the expected move defined last month. 

The expected move through July, according to the tastytrade platform, is about $5,690 to the upside and about $5,415 to the downside from its current price of $5,552. 

Price action since our last update has remained bullish. Dips in price have been quickly reversed by buyers, often to new all-time highs. Significant changes in market sentiment would have to occur for sellers to take over quickly. If we do see selling pressure in July, it is likely to be a slow list downward met with spikes of buying pressure. 

 A note on earnings trades 

To capture the bulk of the volatility of earnings announcements, earnings trades are often executed either the day before or on the day of the earnings announcement. However, earnings trades can also be placed days or weeks before an earnings event, which could lead to early profit taking.  

Alternatively, placing a trade shortly after an earnings announcement can be a strategic choice to circumvent the binary nature of the event. Evaluate each trade in a way that enables you to execute the position that matches your strategy.   

If you're considering a trade going into an earnings event, one approach is to initiate the position in the monthly options contract that follows the earnings event. This strategy offers flexibility. Should you need to defend your position—perhaps because of unexpected market movements—you have the choice to “roll” it out to the subsequent monthly options. Rolling out the position in this way enables you to extend its duration and potentially collect more premium, providing a buffer against market volatility. 

Top 10 stocks to watch in March 2024  

1. Morgan Stanley (MS) – July 16, Before the open   

2. Johnson & Johnson (JNJ) – July 19, Before the open   

3. United Airlines (UAL) – July 19, After the close   

4. Alcoa (AA) – July 17, After the close   

5. Netflix (NFLX) – July 18, After the close   

6. American Express (AXP) – July 19, Before the open   

7. General Motors (GM) – July 23, Before the open   

8. Freeport-McMoRan (FCX) – July 23, Before the open   

9. Tesla (TSLA) – July 23, After the close   

10. Amazon (AMZN) – July 30, After the close 

1. Morgan Stanley (MS) 

Morgan Stanley, a global financial services firm, provides investment banking, securities, wealth management and investment management services. 

MS is up 3.36% year-to-date. Its IVR is 48.4, with July IVx at 30.5, August IVx at 30.5, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

MS is medium-priced stock, so medium-sized and large accounts could consider undefined risk positions. A 22-delta short strangle sets up well with a decent credit to buying-power-used ratio. A 30-delta iron condor also sets up well. Directional spreads can be set up in either direction with your choice of risk, if you have a directional assumption. 

2. Johnson & Johnson (JNJ) 

Johnson & Johnson, a multinational corporation, develops medical devices, pharmaceuticals and consumer packaged goods. 

JNJ is down 10.92% year-to-date. Its IVR is 59.9, with July IVx at 22.3, August IVx at 19.1, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

JNJ is higher-priced stock, so medium-sized to large accounts could consider undefined risk positions. A 22-delta short strangle sets up OK with a higher buying-power-used to credit-received ratio. A 25-delta short iron condor sets up decently. Directional spreads can be set up in either direction with your choice of risk, if you have a directional assumption.  

3. United Airlines (UAL) 

United Airlines, a major American airline, operates an extensive domestic and international route network. 

UAL is up 17.19% year-to-date. Its IVR is 67.5, with July IVx at 78.3, August IVx at 56.7, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

UAL is a lower-priced stock, so smaller accounts could consider undefined risk positions. A 22-delta short strangle sets up well with a decent credit to buying-power-used ratio. Directional spreads can be set up in either direction with your choice of risk if you have a directional assumption. 

4. Alcoa (AA) 

Alcoa produces bauxite, alumina and aluminum products. 

AA is up 15.78% year-to-date. Its IVR is 57.5, with July IVx at 68, August IVx at 54.5, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

AA is a lower-priced stock, so smaller accounts could consider undefined risk positions. A 22-delta short strangle sets up well with a decent credit to buying-power-used ratio. Directional spreads can be set up in either direction with your choice of risk, if you have a directional assumption. 

5. Netflix (NFLX) 

 Netflix is a streaming service that offers a wide variety of TV shows, movies, and original content. 

NFLX is currently up 41.63% year-to-date. Its current IVR is 59.8, with July IVx at 48.4, August IVx at 39.5, and its liquidity is rated 2 out of 4 on the tastytrade platform. 

NFLX is high-priced stock, so only large sized accounts could consider undefined risk positions. A one standard deviation short strangle sets up OK with a high buying–power–used to credit received ratio. An 18-delta short iron condor sets up decently. Directional spreads can be set up in either direction with your choice of risk if you have a directional assumption.  

6. American Express (AXP) 

 American Express, a global financial services corporation, is known primarily for credit card, charge card and travel-related services. 

AXP is up 22.47% year-to-date. Its IVR is 59.4, with July IVx at 36.6, August IVx at 31.1, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

AXP is high-priced stock, so only large accounts could consider undefined risk positions. A 19-delta short strangle can be set up but requires a very high credit to buying-power-used ratio. A 25-delta short iron condor sets up well. Directional spreads can be set up in either direction with your choice of risk if you have a directional assumption.  

7. General Motors (GM) 

General Motors, an American multinational corporation, designs, manufactures, markets and distributes vehicles and vehicle parts. 

GM is up 26.44% year-to-date. Its IVR is 55.4, with July IVx at 28.8, August IVx at 32.9, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

GM is a lower-priced stock, so smaller accounts could consider undefined risk positions. A 26-delta short strangle sets up well with a decent credit to buying-power-used ratio. Define your risk using an iron condor if you would like. Directional spreads can be set up in either direction with your choice of risk if you have a directional assumption.  

8. Freeport-McMoRan (FCX)  

Freeport-McMoRan, a mining company, extracts copper, gold and molybdenum. 

FCX is up 15.16% year-to-date. Its IVR is 74.2, with July IVx at 40, August IVx at 43.8, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

FCX is a lower-priced stock, so smaller accounts could consider undefined risk positions. A 22-delta short strangle sets up well with a decent credit to buying-power-used ratio. Use an iron condor to define your risk if you would like. Directional spreads can be set up in either direction with your choice of risk if you have a directional assumption.  

9. Tesla (TSLA)  

Tesla, an electric vehicle and clean energy company, designs and manufactures electric cars, battery energy storage and solar products. 

TSLA is up 21.06% year-to-date. Its IVR is 49.9, with July IVx at 53.2, August IVx at 56.7, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

TSLA is high-priced stock, so only large accounts could consider undefined risk positions. A one standard deviation short strangle sets up okay with a very high buying-power-used to credit received ratio. A one standard deviation short iron condor sets up OK. Directional spreads can be set up in either direction with your choice of risk if you have a directional assumption.  

10. Amazon (AMZN) 

Amazon, a multinational technology company, focuses on e-commerce, cloud computing, online advertising, digital streaming and artificial intelligence. 

AMZN is up 30.56% year-to-date. Its IVR is 37.2, with July IVx at 28.4, August IVx at 36.7, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

AMZN is high-priced stock, so only large accounts could consider undefined risk positions. A one standard deviation short strangle sets up okay with a very high buying-power-used to credit received ratio. A 22-delta short iron condor sets up OK. Directional spreads can be set up in either direction with your choice of risk if you have a directional assumption. 

Ryan Sullivan is an active options and forex trader and programming producer for the tastylive network. 

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