Options Brief – Nasdaq 12-day Winning Streak – 17 April 2026
By Koen Hoorelbeke, Investment and Options Strategist
Summary
The Nasdaq 100 futures achieved their longest winning streak since July 2009, marking twelve consecutive gains. This positive momentum was interrupted by Netflix's disappointing Q1 results, which led to a nearly 10% drop in pre-market trading.
Market Overview
On April 16, the Nasdaq recorded its twelfth consecutive daily gain, supported by easing tensions in the Middle East and strong Q1 results from TSMC. The S&P 500 closed at a record high of 7,041.28, while the VIX continued its downward trend, closing at 17.94. The upcoming Netflix earnings report was a key focus for traders.
Headline Drivers
Recent developments in the Middle East, including an optimistic statement from Trump regarding Iran and a confirmed ceasefire between Israel and Lebanon, contributed to a risk-on sentiment in the markets. TSMC's impressive Q1 performance, with a 58.3% year-on-year profit increase, further bolstered market confidence, although TSMC shares fell post-announcement due to a sell-the-news reaction.
Market Snapshot
As of April 16, 2026:
- S&P 500: 7,041.28 (+0.26%) - new record closing high.
- Nasdaq 100 futures: 26,487.25 (+0.12%) - new record; longest winning streak since July 2009.
- Russell 2000: ~2,718.54 (+0.18%) - new record closing high.
- WTI crude: ~$94.69 (+3.72%) - increased due to geopolitical factors.
- VIX: 17.94 - continuing its downward trend.
Pre-market on April 17:
- Netflix (NFLX): $97.32 (-9.71%) - disappointing Q1 results.
- WTI crude: ~$88.84 (-6.18%) - unwinding previous gains.
- VIX: ~18.18 - rising due to Netflix's performance and oil price drop.
Options Analysis
The VIX's closing at 17.94 indicated a low volatility environment, but the pre-market reaction to Netflix's earnings changed the outlook. The actual move of -9.71% exceeded the expected range of ~6.54%, leading to significant losses for short-volatility positions. This pattern of realized volatility exceeding implied volatility was also seen in TSMC's earnings, suggesting a need for defined-risk strategies in high-expectation earnings scenarios.
Conclusion
While the market had been on a bullish trend with record highs and a favorable geopolitical backdrop, the disappointing earnings from Netflix and the drop in WTI crude oil prices have shifted the sentiment. Traders are advised to remain cautious and consider defined-risk strategies as the earnings season progresses, given the potential for volatility in high-expectation stocks.