Earnings season is winding down, but we do still have a couple of important companies reporting including Crowdstrike (CRWD), Broadcom (AVGO), Dollar Tree (DLTR), Dollar General (DG), Lululemon (LULU) and Docusign (DOCU).
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.
