Stocks with Notable Option Volatility: First Republic Bank, Albertsons, ImmunoGen and More
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 future of First Republic Bank remains in the balance as it looks to secure a rescue package over the weekend, with the shares treading water, having lost 95% of their value in the last couple of months," CMC Markets analyst Michael Hewson writes. First Republic's shares fall 40%.
Tigress Financial analyst Ivan Feinseth upgrades Albertsons Companies (NYSE:ACI) from Neutral to Buy and lowers the price target from $32 to $27.
Here is the IV Ranking of the day:
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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