Earnings season is winding down, but we still have a couple of big name companies reporting. This week we have Broadcom (AVGO), Crowdstrike (CRWD), Palo Alto Networks (PANW), Medtronic (MDT) and Ciena Corp (CIEN) all reporting.
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.
