It is another big week on the earnings front with a lots of big name companies reporting. This week could make or break the market. This week we have SpaceX (SPCX), Advanced Micro Devices (AMD), Palantir Technologies (PLTR), Sandisk (SNDK), Uber Technologies (UBER), McDonald’s (MCD), Caterpillar (CAT), Merck & Company (MRK), Disney (DIS), Shopify (SHOP) and Arista Networks (ANET) 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.
