It’s a slightly quieter week on the earnings front but we still have a few key names reporting. These include Disney (DIS), PayPal (PYPL), Airbnb (ABNB), Duke Energy (DUK), Occidental Petroleum (OXY) and Palantir (PLTR).
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.
