Stocks with Notable Option Volatility: CGC, CCCC and PCT
Welcome to our column, where we track and analyze the ever-changing volatility of the S&P 500 and NASDAQ indices and stocks with notable option volatility.
Implied volatility is a measure of the market's expectation of the potential price movements of the stock in the future.
Since our last column, the implied volatility of the $S&P 500 Index(.SPX.US$ has edged lower, as the index is heading for new high.
The options for $Canopy Growth(CGC.US$ have recently captured attention with a significant level of implied volatility (IV). With a trading volume of 4.78K, the IV percentile ranks impressively high at 97%, indicating that the current IV is higher than the majority of its values over the past year. The one-year IV high for CGC options stands at a substantial 314%, with the current IV level at 242%, which is still elevated but indicates a notable decrease in volatility expectations among investors. This is further evidenced by a 1-day IV change of -9.3%, suggesting a recent dip in the near-term uncertainty or risk perceived by the market participants regarding the future price movement of CGC's stock.
Here is the IV Ranking of the day:
The chart only includes any company with a market cap of over 1 million and a share price of over $2.5.
Top Option Volatility 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:
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Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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