This week is much more sedate on the earnings front after a busy few weeks, which could be a good or a bad thing depending on your approach. This week we have Cisco Systems (CSCO), RocketLab (RKLB), CoreWeave (CRWV) and Applied Materials (AMAT) as the main companies reporting.
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.