Stocks with Notable Option Volatility: FibroGen, Biomea Fusion and U power.

Options Newsman wrote a column · Jun 26, 2023 07:30

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 implied volatility. The $FibroGen(FGEN.US)$, $Biomea Fusion (BMEA.US)$ and $U Power (UCAR.US)$ has the highest implied volatility of all stocks with a market cap of over 100 million.

$Biomea Fusion (BMEA.US)$ saw its stock prices decline by 5.89% during the previous trading session. The company has been in the news lately due to its efforts towards advancing cancer treatment, but the recent dip in the stock price might have raised concerns among investors.

The options data reveals that the implied volatility of the stock is relatively high compared to its historical volatility, which could imply higher uncertainty or potential price movements in the near future. The current implied volatility stands at 184%, with a 1-day IV change of 26.6%.

In addition, market participants are keeping an eye on the upcoming 2023 American Diabetes Association 83rd Scientific Sessions event, as Biomea Fusion is expected to present its latest research on diabetes and other related diseases.

Here is the IV Ranking of the day:

Stocks with Notable Option Volatility: FibroGen, Biomea Fusion and U power.

The chart only include any company with market cap of over 100 million and share price of over$2.5.

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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