
All eyes are on Nvidia (NVDA) this week in a highly anticipated earnings report. We also have a few other big names all set to report such as Walmart (WMT), Snowflake (SNOW), Target (TGT), Lowe’s (LOW), Palo Alto Networks (PANW), Deere & Company (DE) and Medtronic (MDT).
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.