It’s a big week on the earnings front with some key names due to report this week. We have Tesla (TSLA), Intel (INTC), UnitedHealth Group (UNH), Boeing (BA), Servicenow (NOW), Freeport McMoran (FCX) and Newmont Mining (NEM) all reporting in what shapes as a busy and pivotal week for stocks.
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
