It’s a massive week on the earnings front with some big cap tech companies reporting amongst many others. These include Amazon (AMZN), Microsoft (MSFT), Meta Platforms (META), Alphabet (GOOGL), Verizon (VZ), Coca-Cola (KO), United Parcel Service (UPS) and McDonald’s (MCD).
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.
