We get a small reprieve from earnings this week before Q1 earnings kicks off next week. There is really only one company of interest reporting this week – Conagra Brands (CAG).
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.
