S&P 500 and Nasdaq Post Sixth Straight Weekly Gain

Markets Keep Climbing: Six Weeks and Counting

U.S. equity markets closed mostly higher on Friday, extending a momentum-driven rally that has now lasted six consecutive weeks for both the S&P 500 and the Nasdaq. The S&P 500 gained approximately 0.3% on the session, while the Nasdaq outperformed with a 0.9% advance. The Dow Jones Industrial Average was the lone holdout, slipping about 0.3% to close slightly in the red.

For context, the last time either index posted six straight weeks of gains was October 2024 — making this the strongest sustained weekly run in several months. That kind of persistent upward momentum is worth paying close attention to, especially for traders positioning in longer-dated options contracts.

Magnificent Seven Earnings Take Center Stage

This past week was one of the most consequential of the earnings season. Five of the so-called Magnificent Seven megacap technology companies reported quarterly results, and the outcomes largely supported the bullish sentiment already baked into the market.

Apple was the standout performer on Friday, climbing more than 3% after the company delivered a solid sales forecast the evening prior. Management highlighted strong demand trends across its product lineup, giving investors renewed confidence in the company's near-term revenue trajectory. For a stock of Apple's size, a single-day move of that magnitude reflects genuine conviction from institutional buyers — not just noise.

The broader Magnificent Seven cohort — which includes names like Microsoft, Nvidia, Alphabet, Meta, and Amazon — continues to carry significant weight in both the S&P 500 and Nasdaq indexes. When these companies report well, the indexes tend to follow. When they disappoint, the damage can be swift and widespread.

What the Six-Week Win Streak Signals

A six-week consecutive gain is not a common occurrence. It suggests that buyers have consistently absorbed selling pressure week after week, which speaks to underlying demand at current price levels. Some key factors driving this sustained run include:

• Resilient corporate earnings: Companies across sectors are largely beating or meeting estimates, reducing fear of an earnings-driven selloff.
• Moderating rate expectations: Traders continue to price in a measured Federal Reserve stance, reducing the premium on defensive positioning.
• Big Tech strength: Megacap outperformance has provided index-level support even when smaller caps lag.
• Investor sentiment shift: After a volatile start to the year, money appears to be rotating back into equities with more conviction.

None of this guarantees the rally continues, but six weeks of accumulating evidence tilts the near-term bias toward the bulls — at least until data or macro events say otherwise.

What This Means for Options Traders

For retail options traders, a sustained market rally paired with strong earnings from the largest stocks in the index creates a specific set of opportunities worth examining carefully.

When large-cap stocks like Apple or other Magnificent Seven names trend higher over multiple weeks, the options market often misprices the probability of continued upside — particularly in deep out-of-the-money LEAPS calls with longer expiration windows. These contracts, often priced between $0.01 and $0.08, can offer asymmetric upside if momentum persists or accelerates into the back half of the year.

The key is identifying which contracts carry reasonable probability given the current trend, and which are simply lottery tickets with no structural support. This is where systematic scanning becomes valuable. Tools like the StrikeEdge scanner are built specifically to surface these deep OTM LEAPS opportunities on large-cap stocks, filtering for the contracts that meet defined price and liquidity thresholds so traders are not manually combing through thousands of strike chains.

A few practical considerations for this environment:

• Favor stocks with positive earnings momentum: Names that beat estimates and raised guidance are the most likely candidates for continued upside surprises.
• Watch implied volatility levels: After a strong earnings week, IV often compresses — which can make LEAPS calls cheaper and more attractive to enter.
• Size positions conservatively: Deep OTM contracts can go to zero. Treat each position as a defined-risk speculation, not a core holding.
• Think in time horizons: LEAPS give you runway. A six-week rally today could become the foundation of a much larger move by year-end.

The market is sending a consistent signal right now. Whether that signal translates into options profits depends entirely on how disciplined and systematic your approach is. Six weeks of gains does not mean the easy money has already been made — for patient LEAPS traders, it may just be the beginning of the setup.