Earnings season is starting to wind down, but we still have some important names reporting which should give us some insight into the outlook for the tech sector. Big names reporting this week include Broadcom (AVGO), Marvell Technology (MRVL), Crowdstrike (CRWD), Target (TGT) and Costco (COST).
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.
