It’s a massive week on the earnings front this week, with some key technology names due to report. This week we have Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOGL) all set to report along with Robinhood Markets (HOOD), Coinbase (COIN), Intel (INTC), Sandisk (SNDK), Exxon Mobil (XOM) and Visa (V).
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.
