Stocks have slid in recent weeks, punctuated by the occasional sharp reversal, but the bumpy ride for equities has been pretty smooth compared with bonds. That's a reason for investors to be nervous. The equity derivatives team at Bank of America said in a note to clients that the Cboe Volatility Index , a measure of expected volatility for stocks, is lagging its counterpart for the bond market. That could mean the volatility for stocks is due to increase sharply. "The persistent large gap between rates vol and cross-asset vols remains a threat to risk assets. The MOVE index (rates vol) is now at 78% of its Covid highs, while the VIX remains at 37% of its Covid peak," the note said. The VIX has risen since the note was published on Tuesday morning, with stocks falling sharply later that day, but the index is still well off its Covid-era highs. Further, with corporate America in the heart of earnings season, there are plenty of catalysts to inject more instability into the stock market. Bank of America created a list of companies that are reporting in the coming days and have abnormally high expected price moves, based on pricing in the options market. The companies listed below have an expected move — in either direction — in the 90th percentile or higher of historical post-earnings moves. Source: Bank of America The list includes some of the biggest stocks in the market, which could have an outsized impact on the major indexes. Apple and Amazon , which both report after the bell on Thursday, are the two biggest names on the list. Both have recent histories of volatile post-earnings trading, with multiple days featuring moves of more than 5% over the past eight quarters. Apple investors could also be bracing for some bad news. JPMorgan analyst Samik Chatterjee recently warned that Apple's iPhone sales could disappoint investors . Facebook-parent Meta Platforms also makes the list, and it is about to report for the first time since a 26.4% decline following its fourth-quarter release. Another stock that has a history of sharp price swings is Roku . Streaming video stocks have already shown volatility this earnings season, with Netflix's dramatic decline last week . Outside of the tech and media stocks, energy giant Chevron also has an implied move of 4.4%, according to Bank of America. Energy stocks have dramatically outperformed this year, but the latest pullback for stock has hurt that sector as well. — CNBC's Michael Bloom contributed to this report.
Small toy figures are seen in front of displayed Facebook's new rebrand logo Meta in this illustration taken, October 28, 2021.
Dado Ruvic | Reuters
Stocks have slid in recent weeks, punctuated by the occasional sharp reversal, but the bumpy ride for equities has been pretty smooth compared with bonds. That's a reason for investors to be nervous.