Option Volatility And Earnings Report For July 27-31

Option Volatility And Earnings Report For July 27-31 Gavin McMaster Mon, July 27, 2026 at 1:00 PM GMT+2 4 min read AAPL MSFT AMZN META XOM It is a mammoth week on the earnings front with a plethora of important companies reporting. This week could make or break the market. This week we have Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), Exxon Mobil (XOM), Starbucks (SBUX), Robinhood (HOOD) and Coinbase (COIN) 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 Corp Shows Strong Q2 Results and Free Cash Flow - Shorting INTC Puts is Still the Best Play Fed Decision, Tech Earnings and Other Can't Miss Items this Week Everyone Loves November Soybeans Right Now.

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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 PYPL – 8.

8% BE – 27. 0% KO – 3. 2% F – 6.

5% BA – 6. 0% GLW – 12. 6% STX – 14.

4% UPS – 7. 0% V – 3. 9% Wednesday MSFT – 7.

2% META – 8. 4% HOOD – 11. 5% CVNA – 13.

4% QCOM – 9. 7% ARM – 15. 2% PG – 3.

8% LRCX – 12. 8% CMG – 9. 6% VRT – 11.

9% FTNT – 12. 8% BSX – 8. 3% AEM – 5.

8% SBUX – 6. 4% Thursday AMZN – 7. 2% AAPL – 4.

3% COIN – 10. 7% VALE – 3. 9% BMY – 4.

8% MO – 4. 6% KKR – 6. 0% VLO – 6.

0% Friday XOM – 4. 2% CVX – 4. 0% ABBV – 4.

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. Story Continues Stocks With High Implied Volatility 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 COF -2. 4 vs 5.

5% expected GM +4. 9% vs 6. 7% expected SCHW -2.

5% vs 4. 7% expected MMM +7. 3% vs 5.

8% expected TSLA -14. 5% vs 7. 0% expected GOOGL -7.

1% vs 6. 6% expected IBM -2. 3% vs 6.

8% expected NOW -3. 7% vs 12. 5% expected T +3.

5% vs 5. 0% expected TXN -3. 1% vs 10.

5% expected GEV +13. 8% vs 8. 6% expected CSX +5.

8% vs 4. 6% expected INTC -7. 9% vs 14.

9% expected FCX -2. 3% vs 7. 2% expected NEM -1.

6% vs 6. 6% expected BX +1. 4% vs 5.

6% expected RTX +7. 3% vs 5. 3% expected LMT +10.

5% vs 5. 4% expected VZ +5. 8% vs 4.

6% expected SLB +11. 0% vs 4. 7% expected AXP -4.

3% vs 4. 6% expected NEE 0. 0% vs 3.

8% expected Overall, there were 13 out of 22 that stayed within the expected range. 10 out of 22 moved higher following their announcement. Unusual Options Activity TSLA, MSTR, MU, BE, MRNA and AAPL 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.