Earnings season is wrapping up, with Nvidia (NVDA) set to make a market-shaping announcement this Wednesday. Other key companies reporting include Discovery (WBD), Snowflake (SNOW), Salesforce (CRM), Home Depot (HD), Dell Technologies (DELL), Baidu (BIDU), and Realty Income (O).

Implied volatility for stocks usually spikes before earnings reports, driven by demand for options. After the announcement, implied volatility tends to normalize. Expected ranges for this week’s earnings include NVDA at 6.3%, SNOW at 12.6%, and CRM at 9.9%.

Traders can use expected move ranges to structure trades, like bear call spreads or bull put spreads. Keeping position sizes small and using risk-defined strategies is important. Last week’s earnings moves saw most stocks staying within the expected range, with 5 out of 10 moving higher post-announcement.

Unusual options activity was seen in stocks like Pfizer (PFE), CME Group (CME), Qualcomm (QCOM), Tesla (TSLA), IREN, CRWV, and Disney (DIS). Remember that options trading carries risks, and always conduct thorough research or consult a financial advisor before making investment decisions.

Read more at Barchart: Option Volatility And Earnings Report For February 23