Stocks with Notable Option Volatility: PacWest, FibroGen and Aemetis
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$PacWest Bancorp(PACW.US)$, $FibroGen(FGEN.US$, and $Aemetis(AMTX.US$ has the highest implied volatility of all stocks with a market cap of over 100 million.
Pacwest Bancorp experienced a significant rise of 19.55% during the previous trading session, drawing attention from options traders. The option volume for PACW reached 168.14K, with an IV percentile of 91%. The current implied volatility is at 196%, while the one-year high was recorded at 533%. However, there was a 1-day IV change of -37.3%. The current implied volatility of 196% indicates that the market is anticipating large price swings in the near term. It remains to be seen whether this positive price momentum will continue for PACW or whether it will experience a correction in the coming days.
Fibrogen experienced a drop of 1.82% during the previous trading session, leading to an influx of options activity. The high IV percentile of 95% indicates that options traders are expecting significant price movements for FGEN in the near term. The historical volatility based on the one-year high of 188% suggests that the stock has seen higher levels of price fluctuations in the past. However, the current implied volatility is still relatively high compared to the historical average. The 1-day IV change of 26.3% implies that options traders are anticipating more significant price movements in the coming days.
The $Albertsons Companies(ACI.US$, $McDonald's(MCD.US$ and $Coca-Cola(KO.US$ has the lowest implied volatility of all stocks with a market cap of over 100 million.
Here is the IV Ranking of the day:
The chart only include any company with market cap of over 100 million and share price of over $2.5.
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.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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gelatoz : any relationship higher IV and higher call/put. ratio ?