Earnings Reports - Major companies such as Costco (COST), Broadcom (AVGO), Adobe Systems (ADBE), and Oracle (ORCL) are set to report their Q3 earnings this week [1] Implied Volatility - Implied volatility tends to be high before earnings reports due to market uncertainty, leading to increased demand for options [2] - After earnings announcements, implied volatility typically decreases to normal levels [2] Expected Stock Movements - Expected price movements for the stocks reporting this week are as follows: COST is expected to move 3.9%, AVGO 7.8%, ADBE 7.9%, and ORCL 10.9% [4] - Traders can utilize these expected moves to structure their trades, with bearish traders considering bear call spreads and bullish traders looking at bull put spreads or naked puts [4] Trading Strategies - Neutral traders may consider iron condors, ensuring that short strikes are outside the expected range [5] - It is recommended to use risk-defined strategies and maintain small position sizes when trading options over earnings [5] High Implied Volatility Stocks - A stock screener can identify stocks with high implied volatility, with filters including total call volume greater than 5,000, market cap over 40 billion, and IV rank above 40% [6][7] Recent Earnings Moves - Last week, CRDO saw a price increase of 10.1% compared to an expected 17.3%, while MDB increased by 22.2% against an expected 13.3% [9]