It’s a somewhat quiet week on the earnings front this week, with Nvdia (NVDA), Costco (COST), Lowes (LOW), Zoom Video Communications (ZM), Snowflake (SNOW) and Marvell Technology (MRVL) headlining.
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.
