Earnings season heats up this week with all eyes on Tesla (TSLA) and Alphabet (GOOGL). Other big names reporting this week include Intel (INTC), Verizon (VZ), Nemont Mining (NEM), Boeing (BA), Chipotle Mexican Grill (CMG), Proctor & Gamble (PG) and Merck (MRK).
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.
