Stocks with Notable Option Volatility: FRC, KO, and SNDL
Implied volatility is a measure of the market's expectation of the potential price movements of the stock in the future. Here are the stocks with the most notable Implied volatility today."
Here are the notable stocks with the highest and lowest implied volatility.
The $Mullen Automotive(MULN.US$ , $SNDL Inc(SNDL.US$ , and $First Republic Bank(FRC.US$ has the highest implied volatility of all stocks with a market cap of over 300 million today.
Shares of $First Republic Bank(FRC.US$ , saw a surge in options trading activity yesterday, with a volume of 135,228 contracts traded, as investors reacted to a massive one-day increase of 264.5% in the implied volatility (IV) of FRC options, which hit a one-year high of 405%, and a 100% IV percentile, signaling a potential large movement in the stock price.
Banks recovered after suffering the biggest losses in three years on concerns that the collapse of Silicon Valley Bank could create contagion. SVB and Signature Bank were closed down by regulators as depositors rushed to pull out their funds. President Joe Biden tried to reassure the public that the banking system is safe, but that didn't stop financial shares from sliding.
The $Newegg Commerce(NEGG.US$ , $Tellurian(TELL.US$ , and $Qualtrics International(XM.US$ has the lowest implied volatility of all stocks with a market cap of over 300 million today.
Investors in $Coca-Cola(KO.US$ , the beverage giant, have their sights set on the upcoming ex-dividend date of March 16, 2023, as shares saw a moderate level of options trading activity today, with a volume of 45,697 contracts traded. While the shares fell by 0.42%, there was only a slight increase of 0.9% in the implied volatility (IV) of 19%, and a 42% IV percentile. As the ex-dividend date approaches, investors will be weighing their options and adjusting their positions accordingly.
Top Option Volatiliy Change
Conclusion And Risk Management
Option implied volatility is a measure of the market's expectation for how much an asset's price will fluctuate in the future, as implied by the prices of options on that asset.
Options are financial contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, the time to expiration, and the implied volatility.
Implied volatility represents the level of uncertainty or risk that market participants perceive in the future price movements of the underlying asset. When investors expect greater volatility, they may be more willing to pay a higher price for options to help hedge their risk, which leads to higher implied volatility.
Implied volatility is usually expressed as a percentage and is calculated using an options pricing model, such as the Black-Scholes model. Traders and investors use implied volatility to assess the attractiveness of options prices, to identify potential mispricings, and to manage their risk exposure.
Source: Benzinga, Dow Jones, CNBC
Disclaimer:
Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Optionsbefore engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. This article is for educational use only and is not a recommendation of any particular investment strategy. Content is general in nature, strictly for educational purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. All investing involves risks. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC). In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS).Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore. In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites https://www.moomoo.com/au. Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
Empower your trading with options news and insights. Stay informed, make better decision, trade wiser. Not an advisor
11KFollowers
13Following
21KVisitors
Follow