Last week was extremely busy on the earnings front, so this week is a little more sedate. That being said, we still have some big names due to report including Amazon (AMZN), Alphabet (GOOGL), Walt Disney (DIS), Palantir Technologies (PLTR), Advanced Micro Devices (AMD), Microstrategy (MSTR), Uber Technologies (UBER) and Pfizer (PFE).
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.
