From MarketWatch: 2024-05-27 08:34:51

Earnings season sees last reports coming in from big names like Costco, Dell Technologies, Marvell Technology, and Salesforce. Implied volatility tends to rise before earnings as speculators and hedgers drive up options demand, affecting prices. Expect ranges for stocks like CRM, PATH, DELL, and others varied this week.

After earnings announcements, implied volatility typically returns to normal levels. Option traders can structure trades based on expected moves, with bearish, bullish, and neutral strategies available. High implied volatility stocks can be found using Barchart’s Stock Screener. Last week’s earnings moves saw some surprises, with only 8 out of 14 staying within expected ranges.

Unusual options activity was noted in stocks like COIN, FSLR, PDD, DELL, EBAY, SHOP, and ENPH. It’s important to remember the risks involved with options trading and to conduct proper due diligence before investing. Stay informed and consult with a financial advisor for investment decisions.

Read more at Nasdaq: Option Volatility And Earnings Report For May 27 – 31