Earnings season is starting to slow down now, but we still have some important companies reporting this week. These include Walmart (WMT), Alibaba (BABA), Baidu (BIDU), Carvana (CVNA), Occidental Petroleum (OXY) and Arista Networks (ANET).
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.
