It’s another big week of earnings with a lot of important companies due to report. This week we have Robinhood Markets (HOOD), Coinbase (COIN), Cisco Systems (CSCO), Applovin (APP), Shopify (SHOP), Arista Networks (ANET), Cloudflare (NET), Spotify (SPOT), Airbnb (ABNB) and McDonald’s (MCD) 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.
