Earnings season ramps up this week, with a loads of big names due to report including Tesla (TSLA), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), Visa (V), Sofi Technologies (SOFI), Intel (INTC), Boeing (BA), Exxon Mobil (XOM), Caterpillar (CAT), Starbucks (SBUX) and Chevron (CVX).
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.
