Option Volatility And Earnings Report For July 20-24

Option Volatility And Earnings Report For July 20-24 Gavin McMaster Mon, July 20, 2026 at 1:00 PM GMT+2 3 min read AXP TSLA INTC GOOG IBM Earnings season ramps up this week with some key tech earnings on tap. This week we have Tesla (TSLA), Intel (INTC), Alphabet (GOOGL), GE Verona (GEV), International Business Machines (IBM), ServiceNow (NOW), Freeport-Mcmoran (FCX) and American Express (AXP) all reporting in what shapes as a busy and pivotal week for stocks. Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report.

Speculators and hedgers create huge demand for the company's options which increases the implied volatility, and therefore, the price of options. More News from Barchart Intel Stock Is Down, But Put Premiums are High - Put Short Sellers Love the High Yields Netflix Tanks on Lower Margins and Flat Outlook - Time to Buy NFLX? Newmont Stock Suddenly Offers a Double-Sided Debit Trade on U.

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After the earnings announcement, implied volatility usually drops back down to normal levels. Let's take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option.

Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate. Monday Nothing of note Tuesday COF – 5.

5% GM – 6. 7% SCHW – 4. 7% MMM – 5.

8% Wednesday TSLA – 7. 0% GOOGL – 6. 6% IBM – 6.

8% NOW – 12. 5% T – 5. 0% TXN – 10.

5% GEV – 8. 6% CSX – 4. 6% Thursday INTC – 14.

9% FCX – 7. 2% NEM – 6. 6% BX – 5.

6% RTX – 5. 3% LMT – 5. 4% Friday VZ – 4.

6% SLB – 4. 7% AXP – 4. 6% NEE – 3.

8% Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range. Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance.

Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range. When trading options over earnings, it is best to stick to risk defined strategies and keep position size small.

If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio. Stocks With High Implied Volatility Story Continues We can use Barchart's Stock Screener to find other stocks with high implied volatility. Let's run the stock screener with the following filters: Total options volume: Greater than 10,000 Market Cap: Greater than 40 billion IV Rank: Greater than 70% This screener produces the following results sorted by IV Rank.

You can refer to this article for details of how to find option trades for this earnings season. Last Week's Earnings Moves BAC +1. 9% vs 3.

6% expected C -5. 3% vs 4. 5% expected WFC -2.

7% vs 5. 1% expected GS +9. 0% vs 4.

7% expected JPM +2. 5% vs 3. 7% expected JNJ -2.

7% vs 3. 8% expected UAL -1. 8% vs 7.

0% expected ASML +2. 2% vs 8. 4% expected MS +0.

4% vs 4. 9% expected TSM -2. 3% vs 6.

5% expected NFLX -7. 3% vs 7. 8% expected UNH +1.

2% vs 6. 3% expected GE -4. 1% vs 5.

4% expected Overall, there were 11 out of 13 that stayed within the expected range. 6 out of 13 moved higher following their announcement. Unusual Options Activity SPCX, MSTR, NFLX, META and TSLA all experienced unusual options activity last week.

Other stocks with unusual options activity are shown below: Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.

On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.