Stocks with Notable Option Volatility: TUP, AMC and EBIX
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 $Tupperware Brands (TUP.US)$， $AMC Entertainment (AMC.US)$ and $Ebix Inc (EBIX.US)$ have the highest implied volatility of all stocks with a market cap of over 100 million.
$AMC Entertainment (AMC.US)$ saw its stock down 3.73% during the previous trading session. This comes as no surprise to investors as the stock has been volatile in recent times due to the pandemic's impact on the movie industry. However, despite the decline in the stock price, the option volume for AMC was at a high of 574.98K. This could potentially be attributed to speculation and hedging by investors as they anticipate further volatility in the stock.
The implied volatility (IV) percentile for AMC options is currently at an incredibly high level of 95%, indicating that options traders expect significant price movements in the near future. The current implied volatility stands at 202%, which is significantly higher than the one-year high IV of 310%. Despite this, there was a -10% reduction in one-day implied volatility, which could suggest a slight decrease in market expectations for sudden price movements.
Here is the IV Ranking of the day:
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:
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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