We have a massive week of earnings, with a loads of big names due to report including Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Meta Platforms (META), Sofi Technologies (SOFI), Alphabet (GOOGL), Coinbase (COIN) and Advanced Micro Devices (AMD) 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.
