It’s a big week of earnings with some big tech stocks and industrials due to report. This week we have Tesla (TSLA), Netflix (NFLX), Intel (INTC), Ford (F), Coca-Cola (KO), International Business Machines (IBM), Freeport McMoran (FCX) and Nemont Mining (NEM) all reporting in what shapes as a busy and pivotal week for stocks.
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.
