Earnings Report and Option Volatility for Major Companies in Week of July 27-31
This week marks a significant earnings season with major companies such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), Exxon Mobil (XOM), Starbucks (SBUX), Robinhood (HOOD), and Coinbase (COIN) set to report. The market is closely watching these reports, which could influence stock performance due to the high implied volatility before earnings announcements. Implied volatility typically rises as traders speculate on potential outcomes of earnings reports, increasing demand for options contracts. After reporting, this volatility often drops back down. Traders can use expected move ranges—calculated from at-the-money call and put prices—to structure trades like bear or bull spreads, iron condors, or naked puts. The article also highlights last week's results where most stocks stayed within their expected range after earnings reports. This data helps traders assess the accuracy of volatility estimates for upcoming weeks.
Tickers: $AAPL $AMZN $COIN $HOOD $META $MSFT $SBUX $XOM