### Market context

MarketWatch notes that the **U.S. earnings calendar is heavy next week**, a setup that often drives a rise in **implied volatility** as investors position for post-report price swings.

### The setup: implied volatility into earnings

Ahead of earnings, options markets frequently price in:

- Wider expected moves (higher implied volatility)

- Larger gaps on the open following results and guidance

MarketWatch’s column describes a trading approach centered on **short-term straddles** (buying calls and puts) expiring shortly after the earnings date, then exiting after the first full trading day following the report.

### Why this matters for stocks

Even when indices are relatively steady, clustered earnings can create:

- Sector rotation and sharp single-stock moves

- Index-level volatility if mega-caps surprise

- Rapid repricing in options (volatility “crush” after earnings)

### What to watch

- Companies reporting with historically large post-earnings swings

- Whether technical weakness in the S&P 500 coincides with deteriorating breadth

- Volatility pricing vs realized moves (are options too expensive or too cheap?)

_Source: MarketWatch (link above)._