Yahoo Finance·2026-01-20 12:00Core Viewpoint - The earnings season is intensifying with major companies like Netflix, Intel, Johnson & Johnson, Freeport McMoran, and 3M Company set to report, indicating a pivotal week for stock movements [1] Earnings Reports and Implied Volatility - Implied volatility tends to be high before earnings reports due to market uncertainty, leading to increased demand for options and higher option prices [2] - After earnings announcements, implied volatility typically decreases to normal levels [3] Expected Stock Movements - The expected price range for stocks can be estimated by summing the prices of at-the-money put and call options, using the first expiry date after the earnings date [3] - Specific expected price movements for companies reporting this week include: - USB: 3.8% - FAST: 7.3% - MMM: 5.6% - NFLX: 7.7% - KMI: 2.8% - JNJ: 3.2% - SCHW: 4.8% - TFC: 6.2% - INTC: 8.7% - FCX: 5.3% - COF: 4.8% - PG: 3.8% - GE: 5.5% - SLB: 4.1% [4][5] Trading Strategies - Traders can utilize expected moves to structure their trades, with bearish traders potentially selling bear call spreads outside the expected range, while bullish traders may consider selling bull put spreads or naked puts [5] - Neutral traders might opt for iron condors, ensuring that short strikes remain outside the expected range [5] - It is advisable for traders to employ risk-defined strategies and maintain small position sizes to mitigate potential losses [6] High Implied Volatility Stocks - A stock screener can be used to identify stocks with high implied volatility, with filters set for total call volume greater than 5,000, market cap over 40 billion, and IV rank above 50% [7]