As we stand just days away from possibly the most nail-biting election in modern U.S. history (also one that happens to be during a global pandemic), it seemed to be wise to widen the scope and dive into a broader perspective on market performance. This rhetoric is offered up every presidential cycle, but in this case, its’ impact seem on par with the hyperbole. Thus, it seemed to be wise to widen the scope and dive into a broader perspective on market performance. Specifically, to try and keep things as "simple" as possible, I thought it would be interesting to approach implied volatility (IV), and it’s ever-changing relationship with the SPDR S&P 500 ETF Trust (SPY), but this time through the lens of the chaotic events of 2020. With help from data pulled by Senior Market Strategist Chris Prybal, we will map out what patterns and/or peaks we’ve exhibited from IV, including where percentages stood pre-COVID-19 peak, during the peak, amid the summer apex, and now, as we enter another wave and zero in on a historic election.

First off, why implied volatility over historical volatility (HV)? Implied volatility is the market’s perception of volatility at present moment. Whereas HV is based off the math from the preceding period of time, whether 10 days, 21 days, etc. While yes, some of the events we will be analyzing have already happened, we are also taking in the present and future events as well.

The below chart shows the SPY from January of this year, with the black line marking the ETF’s corresponding daily closing price, the red showing the put IV, and the green the call IV. Notably, before the coronavirus outbreak, put IV was around 20%. However, by the mid-March peak, implied volatility for puts hit 80%, a substantial surge. After retracing most of this move, SPY IV’s shot up once again to 40%, half most recent high, as the virus spread throughout the country in the so-called "second wave." Since then, IV’s has remained around the 30% level, but is now on its way upward.

What about after the election? Should I anticipate increased volatility as another wave of COVID-19 infections approach? There is no straightforward answer. Below, we looked at SPY and volatility from an even wider lens; from the beginning of the last presidential election campaign season at the start of 2016, to now. Standing out most looks to be ominous lows in the implied volatility after the initial COVID-19 surge, which look roughly in-line with prior peaks from 2018.

In terms of the impending election, volatility will most likely subside no matter who wins, or if it’s contested (though an initial pop before results is expected in this instance). Per Prybal, if former Vice President Joe Biden wins, implied volatility will subside. However, if President Donald Trump wins, IV may also see a fall.

It’s important to keep in mind that IV’s fluctuate, as they are known but not fixed. How prices fluctuate in the future is unknowable. This means that Cboe Market Volatility Index (VIX) is prone to spikes in anxious moments, so it becomes beneficial to use historical precedent to gauge the magnitude of the spike for present-day inquiries, as this belies the challenge of trading.

Subscribers to Bernie Schaeffer's Chart of the Week received this commentary on Sunday, November 1.

The shares of CVS Health Corp (NYSE:CVS) are up 1.9% at $61.41 in pre-market trading, after the pharmaceutical company named Executive Vice President Karen Lynch as its next CEO. Lynch will assume the role on Feb. 1 and replace the retiring Larry Merlo. Additionally, CVS this morning announced earnings of $1.66 per share on revenue of $67.06 billion, both of which easily bested Wall Street's forecasts.

CVS is recovering from its Oct. 29 close of $55.93, it's lowest finish since the beginning of the pandemic. The equity has soared nearly 9% in that time, and is set to reclaim its 80-day moving average today for the first time since late August. Still, year-to-date, CVS has shed 17.3%.

Meanwhile, puts are popular in the options pits. CVS's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than all but 4% of readings from the past year. So, while calls have outpaced puts on an overall basis, this ratio suggests a healthier-than-usual appetite for puts over the last two week.

Lastly, now looks like the time to enter with options, as it is currently seeing attractively priced premiums amid a volatility crush. CVS' Schaeffer's Volatility Index (SVI) of 35% sits higher than just 18% of readings in its annual range, suggesting short-term options are pricing in relatively low volatility expectations.

Welcome back to our weekly series,  Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks last week and we will look ahead at the pot stocks to watch in the upcoming week.

Investor interest in the cannabis industry continues to grow and the leading players continue to break through legal barrier after legal barrier, especially following the 2020 election. Prior to this week's election, nine states and D.C. have legalized recreational marijuana, and 29 states have legalized medicinal marijuana. After the election, five more states have joined in legalization of marijuana sales. More and more companies are starting to see the opportunity in cannabis selling, suggesting there are more marijuana initial public offerings (IPOs) on the horizon.

Here's a quick roundup of a major cannabis sector news last week (Nov. 2 through Nov. 6):

Canopy Growth Corp (NYSE:CGC), a Canadian-based cannabis company, announced on Wednesday that it would move its U.S. stock listing to the Nasdaq Composite (IXIC) from the New York Stock Exchange (NYSE) on Nov. 16 -- a move it expects will save costs. The company also was looking at the U.S. presidential election and its tight race, with hopes of marijuana decriminalization at the federal level on the line. CGC's Schaeffer's Volatility Scorecard (SVS) ranks high at 83 out of 100, meaning CGC has tended to exceed these expectations during the past year -- a boon for premium buyers.

Aphria Inc. (NASDAQ:APHA), a leading global cannabis company, announced on Nov. 4 that the company has entered into an agreement to acquire SW Brewing Company, LLC. SweetWater Brewing Company is one of the largest independent craft brewers in the United States. According to Schaeffer’s proprietary research, Aphria stock currently sports attractively priced premiums at the moment.

cbdMD, Inc. (NYSE:YCBD), one of the nation’s leading cannabidiol (CBD) brands, confirmed on Nov. 5 that it is on track to submit its Novel Foods Dossier with the United Kingdom’s Food Safety Agency (FSA) by the required regulatory filing deadline of March 31, 2021.

Cronos Group Inc. (NASDAQ:CRON), announced its third-quarter financial results on Nov. 5. The company reported a net loss of $41.2 million which is an increase of 25% year-over-year.

Intec Pharma Ltd. (NASDAQ:NTEC), announced its third quarter earnings and provided a corporate update on Nov. 5. The company reported a net loss of $3.7 million, coming after the company announced a 1-for-20 reverse share split of its outstanding ordinary shares last week. Intec Pharma is a clinical-stage biopharmaceutical company focused on developing drugs based on its proprietary Accordion Pill platform technology

Innovative Industrial Properties, Inc. (NYSE:IIPR), the first and only real estate company on the New York Stock Exchange focused on the medical-use U.S. cannabis industry, announced strong third-quarter results on November 4. IIPR shares jumped up 16.7% the following trading day after the real estate investment trust (REIT) delivered its earnings reports.

22nd Century Group, Inc. (NYSE:XXII), a leading plant-based company that is focused on cannabis research, announced on Nov. 5 that the company released its third-quarter earnings. The company's quarterly net loss improved by $6 million year-over-year, though still showing a significant loss. Revenue reports topped estimates.

GW Pharmaceuticals plc (Nasdaq:GWPH), a world leader in the commercialization of cannabinoid prescription medicines, announced its quarterly financial results for the third quarter of 2020 on Nov. 5. Net loss for the quarter was reported at $12.2 million compared to a net loss of $13.8 million reported in the third quarter of 2019.

Village Farms International, Inc. (NASDAQ:VFF), announced on November 2 that it has completed the acquisition from Emerald Health Therapeutics, Inc. of Pure Sunfarms Corp. (owned by Emerald) for approximately $80 million CAD. According to the CEO, "With one of the largest greenhouse footprints in the U.S., located in one of the best regions for growing in the country, alongside our cannabis success in Canada, we believe there is no company better positioned for long-term success in the U.S. cannabis industry. We are ready to move quickly and aggressively as soon as the regulatory environment permits."

The biggest news in the sector this week is the results of the U.S. election. Election Day hit a high note in several states with the passage of a number of pro-drug measures — ranging from the decriminalization of low amounts of cocaine and heroin in Oregon to the legalization of recreational marijuana in New Jersey and Arizona. New Jersey, Arizona, South Dakota, Montana, Mississippi, and Washington D.C passed laws to further legalize cannabis sales, thereby significantly increasing opportunity in the cannabis industry within the U.S.

Fast food icon McDonald’s Corporation (NASDAQ:MCD) is set to report earnings before the open on Monday November 9 and will look to recover from its underperforming second-quarter earnings report. MCD is up only 6% year-to-date, but has tacked on a massive 73% from its 52-week low.

McDonald’s has a market cap of $159.89 billion and a book value of -$12.72 per share.  The company has a trailing price-earnings (P/E) ratio of 34.06 and a forward P/E ratio 26.04. McDonald's P/E ratio at the moment is 33.96.

Looking into its recent earnings history, McDonald’s has beat expectations only once in its last four earnings reports.  McDonald's best performing quarter in the past twelve months was the third quarter of 2019, despite missing expectations by 5%. The company reported an EPS of $2.11, instead of the expected $2.21. After that, McDonald's beat its expectations in the fourth quarter of 2019 by $0.01, reporting an EPS of $1.97. In its most recent quarter, the company missed their earnings target by 11%. The company reported an earnings per share (EPS) of $0.66 instead of the expected EPS of $0.74. For the report due out on November 9, McDonald’s is expected to boost its EPS to $1.90. For reference, the company has a trailing 12-month EPS of $6.33.

McDonald’s has seen a $5.5 billion decrease in revenue since 2016. The company went from producing $24.62 billion in revenue to $19.12, representing a 32% drop over a 4-year span. Aside from 2019, the company’s revenue have decreased annually since 2016.

McDonald's has performed much better as far as its bottom-line profit over the past four years. The company increased its net income by 29% between 2016 and 2019. Net profits totaled $6.025 billion in 2019. McDonald’s has seen its net income drop significantly over the past 12 months. The company has only produced $4.77 billion, which represents a 21% decrease.

McDonald’s currently has $3.26 billion in cash and $51.92 billion in total debt. The company’s balance sheet last had $47.51 billion in total assets and $55.72 billion in total liabilities. McDonald's total equity stands at -$8.21 billion. One of the most intriguing selling points for investors right now is MCD stock's dividend. McDonald’s has a forward dividend of $5.16 and a yield of 2.38%. The company has paid investor dividends since 1976. McDonald's increased its dividend to $1.29 for the third quarter of 2020 (a 3% increase).

McDonald’s seems likely stay at the top of the fast-food industry well into the foreseeable future. The company has been heavily spending on expanding its business as recently as 2019. In general, it is difficult to see a future where McDonald’s isn’t profitable. The company should have no problem raising capital when/if it needs it. McDonald's can also reduce its debt load significantly if the company makes it a priority.

The main concern here is that it would likely take at least 10 years for the company to reduce its debt enough for the balance sheet to be in good standing. McDonald's also has presented investors with concerns regarding consistent revenue growth. While the inconsistency is understandable for companies that have fulfilled the majority of their growth potential the way that McDonald’s has, it is still a red flag in general for investors.

Investing in this company comes with few risks, even with its negative equity. However, McDonald's appears to just be too big to fail. Overall, investors should manage their expectations for MCD stock growth from current pricing, and investors should be looking at MCD as a solid dividend play.

Investors continue to await the conclusion of the U.S. presidential race, but major tech names helped stocks clear a win yesterday. The Dow Jones Industrial Average (DJI - 28,390.18) rose 542.5 points yesterday. The S&P 500 Index (SPX - 3,510.45) added 67 pointsfor the day. The Nasdaq Composite (IXIC - 11,890.93) gained 300.2 points, or 2.6% for the day. The Cboe Volatility Index (VIX - 27.58) lost 2 points yesterday.

Before the opening bell rings for the last trading session of election week, click here to review what you may have missed from our analysts yesterday.

Today, as we round out the week, nonfarm payrolls, unemployment rate, and consumer credit data will be released tomorrow. Earnings from CVS Health (CVS), DISH Network (DISH), and Hershey Foods (HSY) are scheduled. Be sure to keep an eye out for our weekly review of cannabis sector news later today, chock full of smoking-hot news after we witnessed an election day five-state sweep favoring the expansion marijuana sales in New Jersey, Arizona, Montana, Mississippi, and South Dakota.

For your convenience, we have rounded up the companies slated to release earnings today, November 6:

Acushnet Holding Corp. (NYSE:GOLF -- $36.67) designs, develops, manufactures, and distributes golf products. Acushnet will report its third-quarter earnings before the bell today.

The AES Corporation (NYSE:AES -- $20.97) operates as a diversified power generation and utility company. AES will report its third-quarter earnings before the bell today.

Amneal Pharmaceuticals, Inc. (NYSE:AMRX -- $4.93) develops, licenses, manufactures, markets, and distributes generic and specialty pharmaceutical products. Amneal Pharmaceuticals will report its third-quarter earnings before the bell today.

California Water Service Group (NYSE:CWT -- $46.01) provides water utility and other related services. California Water will report its third-quarter earnings before the bell today.

Cheniere Energy, Inc. (NYSE:LNG -- $49.31) is an energy infrastructure company. Cheniere Energy will report its third-quarter earnings before the bell today.

Cheniere Energy Partners, LP (NYSE:CQP -- $37.39) owns and operates regasification facilities. Cheniere Energy Partners will report its third-quarter earnings before the bell today.

Coty, Inc. (NYSE:COTY -- $3.34) engages in the manufacture, market, sale, and distribution of branded beauty products. Coty will report its first-quarter of 2021 earnings before the bell today.

CVS Health Corporation (NYSE:CVS -- $61.41) provides health services and plans in the United States. CVS Health will report its third-quarter earnings before the bell today.

DISH Network Corporation (NASDAQ:DISH -- $27.39) provides paid TV services in the United States. DISH Network will report its third-quarter earnings before the bell today.

Domtar Corporation (NYSE:UFS -- $26.28) designs, manufactures, markets, and distributes communication papers, specialty and packaging papers, and absorbent hygiene products. Domtar will report its third-quarter earnings before the bell today.

Elanco Animal Health Incorporated (NYSE:ELAN -- $32.58) engages in the innovation, development, manufacture and market products for companion and food animals. Elanco Animal Health will report its third-quarter earnings before the bell today.

Enbridge, Inc. (NYSE:ENB -- $28.39) operates as an energy infrastructure company. Enbridge will report its third-quarter earnings before the bell today.

Epizyme, Inc. (NASDAQ:EPZM -- $13.55) is a late-stage biopharmaceutical company. Epizyme will report its third-quarter earnings before the bell today.

Essent Group Ltd. (NYSE:ESNT -- $41.94) provides private mortgage insurance and reinsurance. Essent Group will report its third-quarter earnings before the bell today.

The Hershey Company (NYSE:HSY -- $144.60) manufactures and sells confectionery products. Hershey will report its third-quarter earnings before the bell today.

Hill-Rom Holdings, Inc. (NYSE:HRC -- $88.26) owns and operates regasification facilities. Hill-Rom will report its first-quarter earnings of 2021 before the bell today.

HMS Holdings Corp. (NASDAQ:HMSY -- $25.21) provides cost containment solutions in the United States healthcare marketplace. HMS Holdings will report its third-quarter earnings before the bell today.

Interface, Inc. (NASDAQ:TILE -- $6.90) is a flooring company. Interface will report its third-quarter earnings before the bell today.

Magna International, Inc. (NYSE:MGA -- $55.38) designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers (OEMs) of vehicles and light trucks. Magna will report its fourth-quarter earnings before the bell today.

Marriott International, Inc. (NASDAQ:MAR -- $100.91) engages in the operation and franchise of hotel, residential, and timeshare properties. Marriott will report its third-quarter earnings before the bell today.

MEDNAX, Inc. (NYSE:MD -- $14.04) provides newborn, anesthesia, maternal-fetal, radiology and teleradiology, pediatric cardiology, and other pediatric subspecialty physician services. MEDNAX will report its third-quarter earnings before the bell today.

Moog, Inc. (NYSE:MOG-A -- $65.72) designs, manufactures, and integrates precision motion and fluid controls and systems. Moog will report its fourth-quarter earnings before the bell today.

Madison Square Garden Sports Corp. (NYSE:MSGS -- $153.02) operates as a professional sports company. MSG Sports will report its fourth-quarter earnings before the bell today.

Mylan N.V. (NASDAQ:MYL -- $15.14) develops, licenses, manufactures, markets, and distributes generic, branded-generic, brand-name, and over-the-counter (OTC) pharmaceutical products. Mylan N.V. will report its third-quarter earnings before the bell today.

Physicians Realty Trust (NASDAQ:DOC -- $18.01) is a real estate investment trust. Physicians Realty Trust will report its third-quarter earnings before the bell today.

Sabre Corporation (NASDAQ:SABR -- $7.51) provides technology solutions to the travel and tourism industry worldwide. Sabre will report its third-quarter earnings before the bell today.

The E.W. Scripps Company (NASDAQ:SSP -- $10.33) operates as a media enterprise through a portfolio of local and national media brands. Scripps will report its fourth-quarter earnings before the bell today.

Telus Corporation (NYSE:TU -- $17.66) provides a range of telecommunications products and services. Telus will report its third-quarter earnings before the bell today.

Ubiquiti, Inc. (NYSE:UI -- $197.80) develops networking technology for service providers, enterprises, and consumers. Ubiquiti will report its fourth-quarter earnings before the bell today.

Ventas, Inc. (NYSE:VTR -- $41.12) is a real estate investment trust. Ventas will report its third-quarter earnings before the bell today.

ViacomCBS, Inc. (NASDAQ:VIAC -- $31.29) operates as a media and entertainment company worldwide. ViacomCBS will report its third-quarter earnings before the bell today.

Virtu Financial, Inc. (NASDAQ:VIRT -- $21.94) provides market making and liquidity services. Virtu Financial will report its third-quarter earnings before the bell today.

Zimmer Biomet Holdings, Inc. (NYSE:ZBH -- $139.35) designs, manufactures, and markets musculoskeletal healthcare products and solutions. Zimmer Biomet will report its third-quarter earnings before the bell today.

Here's to hoping that, by this time next week, the U.S. Presidential election will be in the rearview mirror. Beyond the political realm, Wall Street has plenty to look forward to next week. More jobless claims data, as well as an update concerning the federal budget, is set to be released. We'll also get the latest National Federation of Independent Business (NFIB) small-business index data and the latest reports on producer price index (PPI), and consumer sentiment data. Plus, we have some major names slated to hit the earnings confessional next week.