It’s a huge week for earnings this week with some big names set to report including Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Meta Platforms (META), Robinhood Markets (HOOD), Strategy Inc (MSTR), Coinbase (COIN), UnitedHealth Group (UNH), Visa (V), Mastercard (MA) and Exxon Mobil (XOM).
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.
