Earnings season is almost over, but we do have have a handful of big names reporting this week. This week, we have Crowdstrike (CRWD), Lululemon (LULU), Dollar Tree (DLTR) and Docusign (DOCU) 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.
