Earnings season is wrapping up with big names like Salesforce, Crowdstrike, Marvell Technologies, Snowflake, Dollar Tree, and Dollar General set to report Q3 numbers. Implied volatility is high pre-earnings, impacting options prices, but typically drops after the announcement. Expected stock price ranges are calculated for trading strategies.
Option traders can use expected moves to structure trades such as bear call spreads, bull put spreads, naked puts, or iron condors. Risk-defined strategies and small position sizes are recommended during earnings to manage potential losses. Barchart’s Stock Screener can help find other stocks with high implied volatility for trading opportunities.
Last week’s earnings moves saw BABA, DELL, ZS, WDAY, and DE reporting with mixed results compared to expectations. Unusual options activity was seen in stocks like NEM, RIVN, VALE, COIN, TWLO, GOOG, and BMY. Options trading carries risks, so always conduct thorough research and consult a financial advisor before investing.
Read more at Barchart: Option Volatility and Earnings Report for December 1
