It’s a much quieter week on the earnings front compared to last week, but we do still have some big names reporting including Palantir Technologies (PLTR), Advanced Micro Devices (AMD), Coinbase (COIN), Uber Technologies (UBER) and Shopify (SHOP).
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.
