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Stocks with Notable Option Volatility: PacWest, Western Alliance, ImmunityBio and More

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Options Newsman wrote a column · May 8, 2023 11:22
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 $PacWest Bancorp(PACW.US)$, $Western Alliance Bancorp(WAL.US)$, and $ImmunityBio(IBRX.US)$ has the highest implied volatility of all stocks with a market cap of over 10 million on last Friday.
The stock $PacWest Bancorp(PACW.US)$ experienced a significant increase of 81% last Friday. The option contract volume for the stock was 352.70K, indicating a high level of trading activity.
The IV percentile for PACW is currently at 99%, suggesting that the implied volatility for the stock is higher than it has been for 99% of the past year. This means that traders and investors are pricing in a higher degree of uncertainty and potential price fluctuations for PACW in the near future.
The 1-year-high for IV of PACW is 533%, much higher than the current implied volatility of 347%. This suggests that while the current implied volatility is high, it still has room to increase further based on past volatility levels.
The $National Instruments(NATI.US)$, $Coca-Cola(KO.US)$, and $PepsiCo(PEP.US)$ has the lowest implied volatility of all stocks with a market cap of over 10 million.
Apple, PepsiCo, and Simon Property Group were among the large U.S. companies that announced dividend increases this week.
PepsiCo said it will raise its quarterly payout to $1.265 a share, an increase of 10% from $1.15. The stock, which has returned 8% this year, yields 2.6%.
The dividend is payable on June 30 to shareholders of record at the close of business on June 2.
Here is the IV Ranking of the day:
Stocks with Notable Option Volatility: PacWest, Western Alliance, ImmunityBio and More
Top Option Volatiliy Change
Stocks with Notable Option Volatility: PacWest, Western Alliance, ImmunityBio and More
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 read Characteristics and Risks of Standardized Options before 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.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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