Option Volatility And Earnings Report For January 20 - 23

Earnings season ramps up this week with some big names set to report. This week we have Netflix (NFLX), Intel (INTC), Johnson & Johnson (JNJ), Freeport McMoran (FCX) and 3M Company (MMM) all reporting in what shapes as a busy and pivotal week for stocks. 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, ...