Stocks with Notable Option Volatility: IMVT, RVPH and WE.

Options Newsman wrote a column · Sep 23, 2023 09:14

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.

$Immunovant (IMVT.US)$, a pharmaceutical company, saw its stock drop 4.05% during the previous trading session. However, the company's option volume was 21.08K, with an IV percentile of 98.0%. This indicates that the current implied volatility is quite high at 259%, with a 1-day IV change of 26.6%. The IV 1-year-high stands at an even higher reading of 266%.

Investors are keeping a close eye on IMVT's stock price and options activity amid the high implied volatility. As the pharmaceutical industry continues to face increasing regulatory scrutiny, options traders could potentially leverage this higher implied volatility in their favor. However, given that past performance is not indicative of future results, investors should exercise caution when making decisions and seek professional financial advice as appropriate.

Here is the IV Ranking of the day:

Stocks with Notable Option Volatility: IMVT, RVPH and WE.

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

Disclaimer:

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