As the earnings season heats up, Bank of America thinks certain stocks could see big one-day swings on the back of their reports, creating opportunities for investors if they know where to look. Bank of America looked at stocks with the highest implied volatility going into their earnings releases. A stock's implied volatility is calculated using the market price of its options. The metric reflects how much the market anticipates a stock's price rising or falling.
It's expected to report Thursday before the bell. Mastercard 's shares could also move sharply on the back of earnings, with the options market pricing in a 3.8% swing in either direction. The company's stock has risen 9.03% year to date. KeyBanc upgraded Mastercard stocks earlier this month from sector weight to overweight, citing the company's "growth durability." Mastercard is slated to report earnings Thursday. Valero Energy , the second-largest U.S.