This week marks the start of earnings season with major companies like Netflix, Bank of America, and Taiwan Semiconductor reporting. Implied volatility is high before earnings, leading to increased options prices. Once earnings are announced, volatility typically drops. Expected stock price ranges can be calculated using option chain data. Traders can use these ranges to structure trades, like selling bear call spreads or naked puts. It’s important to stick to risk-defined strategies and keep position sizes small to manage potential losses during earnings season. High implied volatility stocks can be found using Barchart’s Stock Screener. Some stocks with unusual options activity include NVDA, AAL, BP, CRWV, and MSTR. Options trading carries risks, and investors should do thorough research and consult with a financial advisor before making any investment decisions.

Read more at Yahoo Finance: Option Volatility And Earnings Report For July 14