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Tesla, IBM and Intel report earnings next week — here’s the best way to play a volatile market

Lawrence G. McMillan
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Major tech and industrial firms—including Tesla, IBM, Intel, and UnitedHealth—will release quarterly earnings next week, setting the stage for potential market volatility. IBM’s historical data reveals a predictable "sawtooth" pattern: implied volatility spikes before earnings announcements, then sharply drops post-release, influencing option pricing and trading strategies. Analysts highlight this volatility trend as a key indicator for traders, suggesting earnings surprises could drive significant short-term stock movements in either direction. The pattern underscores broader market behavior, where uncertainty peaks ahead of high-profile reports, offering opportunities for options traders to capitalize on implied volatility shifts. MarketWatch’s Lawrence G. McMillan notes this recurring phenomenon, advising investors to monitor volatility metrics closely when positioning ahead of earnings-driven price swings.
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Tesla, IBM and Intel report earnings next week — here’s the best way to play a volatile marketEarnings season brings stock investors several high-profile reports next week, including Tesla TSLA, IBM IBM, Intel INTC and UnitedHealth UNH. The earnings surprises to look for — potential drivers of the share price — have a particular pattern of implied volatility.Consider IBM. The two-year chart below has two graphs on it. The stock price is the bottom graph and implied volatility is on the upper graph. One can see that implied volatility increases into a spike and then plunges, creating a sawtooth pattern. Implied volatility increases as the earnings date approaches and then plunges after the earnings are announced. About the AuthorLawrence G. McMillan is a columnist for MarketWatch and editor of the "MarketWatch Options Trader" newsletter. He is president of McMillan Analysis, an investment and commodity-trading adviser.A Dow Jones CompanyCopyright © 2026 MarketWatch, Inc. All rights reserved.

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