Stocks with Notable Option Volatility: Metropolitan Bank, Western Alliance, FibroGen 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 $PacWest Bancorp (PACW.US)$, $ImmunityBio (IBRX.US)$, and $Metropolitan Bank (MCB.US)$ has the highest implied volatility of all stocks with a market cap of over 10 million.
PacWest Bancorp (PACW) shares fell in late Tuesday morning trading, among other regional bank stocks, amid growing fears around the banking crisis.
Fitch Ratings placed PacWest Bancorp on negative rating watch Monday in response to the bank's update Thursday last week, in which the company confirmed it was reviewing strategic options and holding discussions with potential partners and investors, according to Dow Jones.
The move "does not reflect a material change in Fitch's view of the company's fundamentals credit profile," the credit ratings agency said. Instead, it was driven by the impact of a potential transaction and the uncertainty over the bank's strategic direction, it added.
The $Coca-Cola (KO.US)$, $Johnson & Johnson (JNJ.US)$ and $McDonald's (MCD.US)$ has the lowest implied volatility of all stocks with a market cap of over 10 million.
Johnson & Johnson Highlights First Phase 3 TREMFYA Data In Inflammatory Bowel Disease.
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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