
Earnings season is starting to wind down with not as many big names reporting this week. That being said, we do have a couple of important companies reporting – Salesforce (CRM), Snowflake (SNOW), Lowe’s (LOW) and Zoom (ZM).
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.