Last week was quite eventful on the earnings front with Tesla (TSLA) and Netflix (NFLX) suffering large drops. This week we have more big names such as Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Boeing (BA), Visa (V), Exxon Mobil (XOM) and Verizon (VZ) all set to report.
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.
