Stocks with Notable Option Volatility: Citi, Apple, Carvana and More
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 $Seres Therapeutics (MCRB.US)$, $Morphic (MORF.US)$, and $First Republic Bank (FRC.US)$ has the highest implied volatility of all stocks with a market cap of over 30 million yesterday.
Based on yesterday's market performance, First Republic Bank (FRC) experienced a nearly 4.26% decline in its share value. This decline was accompanied by an option volume of 59.85K and an IV percentile of 52%, indicating moderate option activity. The stock's current IV sits at 173%, significantly higher than its 1-year high of 405%.
Investors will be closely watching FRC's future market movements, especially as the company approaches its earnings release date. With its high IV and recent decline in share value, the stock may present both risks and opportunities for traders looking to enter the market.
Shares of its industry peer $Western Alliance Bancorp (WAL.US)$, one of the regional lenders that drew attention in the turmoil surrounding the collapse of Silicon Valley Bank last month, surged after it reported deposits have now stabilized. Depositors fled regional banks in March after the collapse of Silicon Valley Bank and Signature Bank.
The $Prometheus Biosciences (RXDX.US)$, $Coca-Cola (KO.US)$, and $Johnson & Johnson (JNJ.US)$ has the lowest implied volatility of all stocks with a market cap of over 30 million yesterday.
Dfpg Investments LLC increased its stake in The Coca-Cola Company (NYSE:KO – Get Rating) by 751.2% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 33,723 shares of the company's stock after purchasing an additional 29,761 shares during the period. Dfpg Investments LLC's holdings in Coca-Cola were worth $2,091,000 at the end of the most recent reporting period.
Here is the IV Ranking of today:
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
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