It’s another big week on the earnings front this week with some important companies set to report including Palantir (PLTR), Advanced Micro Devices (AMD), Uber Technologies (UBER), Pfizer (PFE), Disney (DIS), Shopify (SHOP), Arista Networks (ANET) and McDonald’s (MCD).
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.
