Earnings season is winding down, but we still have a couple of key names reporting this week including Crowdstrike (CRWD), Broadcom (AVGO), Marvell Technology (MRVL), Target (TGT), Costco (COST) and Alibaba (BABA).
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.
