Earnings season is coming to an end, but we still have one or two important names to keep an eye on this week, lead by AI play Broadcom (AVGO), discount retailer Dollar Tree (DLTR) plus Docusign (DOCU), Dick’s Sporting Goods (DKS) and Zscaler (ZS).
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.
