
Last week was busy on the earnings front, so this week is a little quieter in comparison. However, we still have Walt Disney (DIS), Palantir (PLTR), United Parcel Service (UPS) and The Trade Desk (TTD) 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.