It’s a quite week on the earnings front, but all eyes will be on Nvida (NVDA) who are due to report on Wednesday after the closing bell. Other big names reporting this week include Walmart (WMT), Home Depot (HD), Target (TGT) and Baidu (BIDU).
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.
