Earnings season is starting to wind down, but we still have a handful of big names reporting. These include Best Buy (BBY), Nio (NIO), Salesforce (CRM), Crowdstrike (CRWD), Broadcom (AVGO) and Lululemon (LULU).
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.
