Stocks with Notable Option Volatility: ImmunoGen, Procter & Gamble, Activision Blizzard 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 $First Republic Bank(FRC.US$, $ImmunoGen(IMGN.US$, and $Protalix Biotherapeutics(PLX.US$ has the highest implied volatility of all stocks with a market cap of over 10 million.
Shares of PLX jumped 8.43% yesterday as traders speculated about the upcoming earnings report from the company. The stock's options also saw significant interest, with a contract volume of 3.92K indicating that traders are betting on potential volatility in the near future. The implied volatility (IV) percentile for PLX is currently at 94%, meaning that implied volatility is higher than it has been for 94% of the days in the past year. Although the current IV of 190% is lower than the 1-year-high of 408%, the 1-day IV change of 19.4% suggests that traders' expectations for volatility have changed significantly over the past day.
Investors should be aware of the upcoming earnings report from PLX, which is set to be released on May 4th. This could potentially cause significant movements in the stock's price and volatility.
The $McDonald's(MCD.US$, $PepsiCo(PEP.US$, and $Procter & Gamble(PG.US$ has the lowest implied volatility of all stocks with a market cap of over 10 million.
Gary A Coombe, CEO, Grooming, on April 25, 2023, sold 14,337 shares in Procter & Gamble (PG) for $2,250,909. Following the Form 4 filing with the SEC, Coombe has control over a total of 38,538 shares of the company, with 36,799 shares held directly and 1,740 controlled indirectly.
Here is the IV Ranking of the day:
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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