The U.S. equities closed higher on Monday, extending the gains after news that U.S. will remove China from the currency manipulator list. And investors' optimism over the coming trade agreement signing event is making the S&P forever-grinding to the upside.

（S&P 500: 3288.13 +0.7% DOW: 28907.05 +0.29% NASDAQ: 9273.93 +1.04%）

While we are on the one-way ticket to the upside and about to move into earnings, in today's market review, let's discuss some of the upside strategies that investors usually use. The earnings that coming first is going to be the financials.

As the chart shows above, over the past 5 weeks financials have done literally nothing but consolidation in the same range. Today it edged a bit to the upside with 0.68% gains toward earnings imminent.

If you take a look at the Implied Volatility that options market priced specifically for $Financial Select Sector SPDR(XLF.US)$, you could realize the IV for XLF has jumped up to 20% with 4 days remaining of the week, means it is supposed to move 20% higher or lower and mostly a 68% of the time should stay in this range within this week.

Over the exact same time frame, SPX got about 10% IV, so financials right now have over twice volatility packed in than S&P, signaling it is ready to move as the earnings ahead.

The chart above shows the big directional bets toward individual banks like $JPMorgan Chase & Co(JPM.US)$, $Bank of America Corporation(BAC.US)$, $Citigroup Inc(C.US)$, $Wells Fargo & Co(WFC.US)$. They are all coming out and they have the ability to move the entire financial sector.

A top scenario strategy toward individuals ahead of earnings could be a butterfly spread strategy. Since the caps are big and investors usually would use a butterfly. For instance, in a bullish view, an investor could write two call options at the weekly IV's upper edge of the specific underlying, then buying a lower and a higher strike on the two sides to limit the risk and capture the profit. and Bearish to write the lower calls, Neutral to write ATM calls.