Stocks with Notable Option Volatility: Implied Volatility Surging for Silvergate Stock Options
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 $Mullen Automotive(MULN.US$, $First Republic Bank(FRC.US$, and $Silvergate Capital(SI.US$ has the highest implied volatility of all stocks with a market cap of over 3 million today.
Shares of $Silvergate Capital(SI.US$ experienced significant losses yesterday, falling by 10.2%. This negative trend continued into the morning of the following day, with an additional drop of 12%. Options volume for SI was 36K contract for yesterday. The 2.5 puts expiring Mar 24 and April 21 were trading most actively.
The IV percentile for SI is currently at a high of 96%, indicating that options traders are pricing in high volatility for the stock. This is supported by the current IV of 259%, which is well above its one-year high of 333%.
It's worth noting that the 1-day IV change for SI is at 35%, indicating a significant increase in volatility from the previous day's trading. As such, investors should be paying close attention to SI as the stock's volatility continues to make waves in the options market.
Options traders may find opportunities to profit from the heightened volatility through careful strategy and analysis.
The $Albertsons Companies(ACI.US$ , $U.S. Xpress(USX.US$ , and $BCE Inc(BCE.US$ has the lowest implied volatility of all stocks with a market cap of over 3 million today.
$Unilever(UL.US$ shares increased 0.79% in yesterday's trading, with options volume at 6.83K. Despite a one-year IV high of 29%, the current IV for UL is only 17%, with a 1-day IV change of 0.8%. The company's low IV percentile of 22% suggests that the company's options are not prcing in significant volatility for the stock.
The option chain with the highest OI for Unilever is 52.5 calls expiring April 21 and 50 calls expiring May 19.
Foundations Investment Advisors LLC grew its holdings in Unilever by 53.1% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 19,847 shares of the company's stock after acquiring an additional 6,886 shares during the period. Foundations Investment Advisors LLC's holdings in Unilever were worth $999,000 as of its most recent SEC filing.
Here is the IV Ranking of today:
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
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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.
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