
Earnings season is winding down, but we do still have some big names reporting including Walmart (WMT), Alibaba (BABA), jd.com (JD), Cisco (CSCO) and Deere & Company (DE).
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.