
It’s a busy week of earnings, with a lot of big names due to report including Tesla (TSLA), Boeing (BA), Newmont Mining (NEM), International Business Machines (IBM), and United Parcel Service (UPS) 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.