Investors are once again preparing for big earnings-day stock moves, paying up to speculate in a market that’s faltering after it reached a record high.
Options on S&P 500 Index members imply an average 4.7% fluctuation following corporate results, data compiled by Bloomberg show. That’s close to the level in July, when the anticipated move was the highest for the start of a reporting season since 2022, using JPMorgan Chase & Co.’s release date as the kickoff.
The increase in options prices underscores some of the challenges facing investors trading stocks that have been grinding higher, outside of rare plunges ...