Stocks with Notable Option Volatility: MRSN, AMC and FNGR

Options Newsman wrote a column · Jul 26, 2023 07:37

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 $Mersana Therapeutics (MRSN.US)$, $AMC院线(AMC.US)$ and $FingerMotion (FNGR.US)$ have the highest implied volatility of all stocks with a market cap of over 100 million.

$PacWest Bancorp (PACW.US)$ witnessed a sharp decline of 27.04% in its stock price during the previous trading session. The company's option volume was recorded at 194.89K with an impressive IV percentile of 97%. The current implied volatility stands at 185%, indicating a high level of uncertainty and potential risk associated with the stock.

Investors must note that the 1-year-high IV for PacWest Bancorp is at 533%, highlighting the historical volatility levels for the stock. This suggests that the stock has experienced significant price fluctuations in the past, and traders should factor this in while considering their investment decisions. The 1-Day IV change of 93.1% indicates a sudden surge in market expectations regarding the future volatility of the stock.

Here is the IV Ranking of the day:

Stocks with Notable Option Volatility: MRSN, AMC and FNGR

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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