Stocks with Notable Option Volatility: EOSE, TUP and VKTX.
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.
$Eos Energy(EOSE.US$ options saw a surge in trading volume during the previous session, with 40.47K contracts exchanging hands. Despite the high level of activity, investors might be hesitant to make any big moves after the stock fell by 5.79% during the same period. The current implied volatility is currently at 260%, which is significantly higher than the 1-year average of 752%. Moreover, there was an 8.3% decrease in the 1-day IV change, indicating a potential drop in the option prices.
The IV percentile for EOS Energy options is currently at 88%, indicating that the implied volatility for these options is higher than 88% of all other options in the market. This means that there may be greater uncertainty about the future direction of the company's stock price, which could impact the premiums of the options.
Here is the IV Ranking of the day:
The chart only includes any company with market cap of over 100 million and 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
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