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Stocks with Notable Option Volatility: Microvision, FibroGen and Pacwest

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Options Newsman wrote a column · May 24, 2023 21:36
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 $Microvision(MVIS.US)$,$FibroGen(FGEN.US)$, and $PacWest Bancorp(PACW.US)$ has the highest implied volatility of all stocks with a market cap of over 100 million.
$Microvision(MVIS.US)$ did not experience any significant price change during the previous trading session, but options activity was high. There was a significant 1-day IV change of 90.2%, signaling a high level of uncertainty in the market.
The high IV percentile of 95% indicates that options traders are expecting significant price movements for MVIS in the near term. The historical volatility based on the one-year high of 731% suggests that the stock has seen much higher levels of price fluctuations in the past compared to the current implied volatility. However, the significant 1-day IV change of 90.2% suggests that traders are anticipating large price swings in the coming days. It remains to be seen whether MVIS will experience upward momentum or downward correction in the future as the market continues to assess its potential price movement.
As always, investors should perform their analysis before making any investment decisions based on options data.
Here is the IV Ranking of the day:
Stocks with Notable Option Volatility: Microvision, FibroGen and Pacwest
The chart only include any company with market cap of over 100 million and share price of over
$2.5.Top Option Volatiliy Change:
Stocks with Notable Option Volatility: Microvision, FibroGen and Pacwest
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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