
After last week’s mammoth earnings calendar, this week is relatively quiet. However we still have some important companies with Palantir (PLTR), Super Micro computer (SMCI), Block (SQ), Moderna (MRNA), Qualcomm (QCOM), Arista Networks (ANET), Gilead Sciences (GILD) and Airbnb (ABNB) all set to report.
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.