Latest news with #impliedvolatility
Yahoo
3 days ago
- Business
- Yahoo
Option Volatility And Earnings Report For Aug 11
There is a big lull in earnings reports this week before some bigger names start to report again the week after. This week, we just have Cisco Systems (CSCO), Applied Materials (AMAT), Sea Ltd (SE), Petroleo Brasileiro (PBR), Nu Holdings (NU), Coreweave (CRWV) and (JD) reporting. More News from Barchart Microsoft's Impressive Free Cash Flow - MSFT Stock Could Be Worth 28% More Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company's options which increases the implied volatility, and therefore, the price of options. After the earnings announcement, implied volatility usually drops back down to normal levels. Let's take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate. Monday Nothing of note Tuesday SE – 11.3% CRWV – 18.4% Wednesday CSCO – 5.3% Thursday AMAT – 6.0% PBR – 4.0% NU – 8.6% JD – 6.2% Friday Nothing of note Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range. Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance. Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range. When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio. Stocks With High Implied Volatility We can use Barchart's Stock Screener to find other stocks with high implied volatility. Let's run the stock screener with the following filters: Total call volume: Greater than 5,000 Market Cap: Greater than 40 billion IV Percentile: Greater than 50% This screener produces the following results sorted by IV Percentile. You can refer to this article for details of how to find option trades for this earnings season. Last Week's Earnings Moves PLTR +7.9% vs 12.1% expected WMB -2.1% vs 4.2% expected AMD -6.4% vs 8.9% expected PFE +5.2% vs 4.2% expected ANET +17.5% vs 9.5% expected BP +3.4% vs 3.9% expected CAT +0.1% vs 5.2% expected APP +12.0% vs 16.6% expected UBER -0.2% vs 7.8% expected DIS -2.7% vs 6.3% expected SHOP +22.0% vs 11.6% expected OXY +2.5% vs 4.9% expected ABNB -8.0% vs 7.9% expected MCD +3.0% vs 3.6% expected FTNT -22.0% vs 9.2% expected DASH +5.0% vs 9.9% expected LLY -14.1% vs -6.7% expected XYZ -4.5% vs 10.6% expected TTD -38.6% vs 13.3% expected DDOG -0.4% vs 8.7% expected Overall, there were 13 out of 20 that stayed within the expected range. 10 out of 20 moved higher following their announcement. Unusual Options Activity TTD, WBD, TSLA, AAPL, MSTR, CRWV, CVNA and UPST and all experienced unusual options activity last week. Other stocks with unusual options activity are shown below: Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
28-07-2025
- Business
- Yahoo
Option Volatility And Earnings Report For July 28
It's a huge week for earnings this week with some big names set to report including Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Meta Platforms (META), Robinhood Markets (HOOD), Strategy Inc (MSTR), Coinbase (COIN), UnitedHealth Group (UNH), Visa (V), Mastercard (MA) and Exxon Mobil (XOM). Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company's options which increases the implied volatility, and therefore, the price of options. More News from Barchart Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Tech Earnings, Tariff Deadline and Other Key Things to Watch this Week Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! After the earnings announcement, implied volatility usually drops back down to normal levels. Let's take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate. Monday Nothing of note Tuesday UNH – 7.9% MRK – 5.1% PYPL – 7.3% BA – 4.7% SBUX – 6.8% UPS – 6.7% V – 3.5% PG – 3.2% SPOT – 9.8% RCL – 6.0% Wednesday HOOD – 9.4% META – 6.1% MSFT – 4.2% VRT – 9.6% CVNA – 13.7% ARM – 9.9% F – 6.8% QCOM – 6.2% Thursday AAPL – 4.1% MSTR – 5.5% AMZN – 5.3% COIN – 7.8% RBLX – 12.9% BMY – 5.1% NET – 12.4% ABBV – 4.3% KKR – 4.6% MA – 3.5% Friday CVX – 2.7% XOM – 2.8% CL – 3.6% Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range. Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance. Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range. When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio. Stocks With High Implied Volatility We can use Barchart's Stock Screener to find other stocks with high implied volatility. Let's run the stock screener with the following filters: Total call volume: Greater than 5,000 Market Cap: Greater than 40 billion IV Percentile: Greater than 80% This screener produces the following results sorted by IV Percentile. You can refer to this article for details of how to find option trades for this earnings season. Last Week's Earnings Moves VZ +4.0% vs 3.7% expected KO -0.6% vs 2.8% expected GM -8.1% vs 5.9% expected RTX -1.6% vs 4.2% expected HAL +1.0% vs 5.5% expected COF +0.9% vs 4.9% expected LMT -10.8% vs 4.6% expected TSLA -8.2% vs 7.4% expected GOOGL +1.0% vs 6.0% expected CSX +0.1% vs 3.4% expected FCX -2.1% vs 4.7% expected CMG -13.3% vs 7.1% expected NEE -6.1% vs 4.2% expected T +0.6% vs 4.8% expected LUV -11.2% vs 6.3% expected IBM +0.0% vs 6.9% expected LVS +4.3% vs 5.2% expected INTC -8.5% vs 8.2% expected NEM +6.9% vs 6.2% expected BX +3.6% vs 4.6% expected MBLY -4.2% vs 10.4% expected HON -6.2% vs 4.0% expected Overall, there were 12 out of 22 that stayed within the expected range. Unusual Options Activity INTC, CRWV, PLTR, NEM and TSLA and all experienced unusual options activity last week. Other stocks with unusual options activity are shown below: Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Option Volatility And Earnings Report For July 21
It's a pivotal week for earnings this week with some big names set to report including Tesla (TSLA), Alphabet (GOOGL), Intel (INTC), Verizon (VZ), Freeport McMoran (FCX) and Newmont Mining (NEM). Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company's options which increases the implied volatility, and therefore, the price of options. More News from Barchart How to Make a 3.0% One-Month Yield By Shorting UBER Puts Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. After the earnings announcement, implied volatility usually drops back down to normal levels. Let's take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate. Monday VZ – 3.7% Tuesday KO – 2.8% GM – 5.9% RTX – 4.2% HAL – 5.5% COF – 4.9% LMT – 4.6% Wednesday TSLA – 7.4% GOOGL – 6.0% CSX – 3.4% FCX – 4.7% CMG – 7.1% NEE – 4.2% T – 4.8% LUV – 6.3% IBM – 6.9% LVS – 5.2% Thursday INTC – 8.2% NEM – 6.2% BX – 4.6% MBLY – 10.4% HON – 4.0% Friday Nothing of note Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range. Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance. Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range. When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio. Stocks With High Implied Volatility We can use Barchart's Stock Screener to find other stocks with high implied volatility. Let's run the stock screener with the following filters: Total call volume: Greater than 5,000 Market Cap: Greater than 40 billion IV Percentile: Greater than 80% This screener produces the following results sorted by IV Percentile. You can refer to this article for details of how to find option trades for this earnings season. Last Week's Earnings Moves FAST +4.2% vs 5.5% expected JPM -0.7% vs 3.7% expected WFC -5.5% vs 4.6% expected C +3.7% vs 4.3% expected JNJ +6.2% vs 2.7% expected BAC -0.3% vs 4.2% expected ASML -8.3% vs 6.1% expected MS -1.3% vs 4.2% expected GS +0.9% vs 4.1% expected PGR +1.8% vs 3.9% expected KMI -1.5% vs 3.5% expected TSM +3.4% vs 5.3% expected NFLX -5.1% vs 7.6% expected ABT -8.5% vs 3.5% expected PEP +7.5% vs 4.0% expected IBKR +7.8% vs 5.5% expected USB -1.0% vs 3.9% expected AXP -2.4% vs 4.5% expected SCHW +2.9% vs .8% expected MMM -3.7% vs 5.5% expected TFC -1.7% vs 3.7% expected SLB -3.9% vs 5.0% expected Overall, there were 16 out of 22 that stayed within the expected range. Unusual Options Activity TSLA, XOM, IBKR, XOM, COIN and HOOD and all experienced unusual options activity last week. Other stocks with unusual options activity are shown below: Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
15-07-2025
- Business
- Yahoo
XRP's Implied Volatility Explodes, Suggests 13% Price Swing as Congress' Crypto Week Kicks Off
The price of XRP (XRP) is likely to swing wildly over the next week, rising or falling more than 10% during Crypto Week on Capitol Hill, the token's implied volatility indicates. Volmex Finance's seven-day XRP implied volatility (IV) index jumped to an annualized 96% from last week's 73%, a significant premium to the seven-day historical volatility of 42%. The elevated value translates to an expected 13% price swing for XRP over the coming seven days. The market is pricing much lower volatility in bitcoin (BTC). The seven-day implied volatility for the largest cryptocurrency has increased only slightly to an annualized 46%, equivalent to an expected weekly price swing of about 6%. The sharp rise in XRP's implied volatility comes as the U.S. House of Representatives is set to review three major bills this week that could shape the digital assets industry. The first is the GENUIS Act, which, if passed, would require stablecoin issuers to hold liquid reserves, accept annual independent audits and publish monthly transparency reports. Also on the table is the CLARITY Act, which will clarify whether cryptocurrencies fall under the SEC or the CFTC's purview. Lastly, there is the Anti-CBDC Surveillance Act, which will prohibit the Federal Reserve from issuing a retail central bank digital currency. XRP, declared as a strategic U.S. asset by the SEC, stands to benefit from regulatory clarity. "The GENIUS Act and CLARITY Act are especially important for setting institutional ground rules — clarifying how stablecoins should be issued and overseen, and formally defining the roles of the SEC and CFTC in overseeing crypto markets. Together, these steps address one of the core barriers to institutional participation: legal uncertainty," Javier Rodriguez-Alarcón, the chief investment officer at crypto liquidity provider XBTO, said in an email. He added that the rulebook clarity will make long-term capital deployment viable, aligning the world's largest economy with processes underway in regions like the UAE, where "defined frameworks are already unlocking tokenized markets." "If passed, these bills could open the door to wider stablecoin adoption, regulated tokenization, and on-chain financial products with full legal backing," he noted. Note that the implied volatility is direction-agnostic, meaning the expected 13% swing may not necessarily be bullish and can unfold in either direction. That said, XRP is currently exhibiting strong bullish momentum, trading over 5% higher on the day at $3, the level not seen since early February, according to CoinDesk data.
Yahoo
14-07-2025
- Business
- Yahoo
XRP's Implied Volatility Explodes, Suggests 13% Price Swing as Congress' Crypto Week Kicks Off
The price of XRP (XRP) is likely to swing wildly over the next week, rising or falling more than 10% during Crypto Week on Capitol Hill, the token's implied volatility indicates. Volmex Finance's seven-day XRP implied volatility (IV) index jumped to an annualized 96% from last week's 73%, a significant premium to the seven-day historical volatility of 42%. The elevated value translates to an expected 13% price swing for XRP over the coming seven days. The market is pricing much lower volatility in bitcoin (BTC). The seven-day implied volatility for the largest cryptocurrency has increased only slightly to an annualized 46%, equivalent to an expected weekly price swing of about 6%. The sharp rise in XRP's implied volatility comes as the U.S. House of Representatives is set to review three major bills this week that could shape the digital assets industry. The first is the GENUIS Act, which, if passed, would require stablecoin issuers to hold liquid reserves, accept annual independent audits and publish monthly transparency reports. Also on the table is the CLARITY Act, which will clarify whether cryptocurrencies fall under the SEC or the CFTC's purview. Lastly, there is the Anti-CBDC Surveillance Act, which will prohibit the Federal Reserve from issuing a retail central bank digital currency. XRP, declared as a strategic U.S. asset by the SEC, stands to benefit from regulatory clarity. "The GENIUS Act and CLARITY Act are especially important for setting institutional ground rules — clarifying how stablecoins should be issued and overseen, and formally defining the roles of the SEC and CFTC in overseeing crypto markets. Together, these steps address one of the core barriers to institutional participation: legal uncertainty," Javier Rodriguez-Alarcón, the chief investment officer at crypto liquidity provider XBTO, said in an email. He added that the rulebook clarity will make long-term capital deployment viable, aligning the world's largest economy with processes underway in regions like the UAE, where "defined frameworks are already unlocking tokenized markets." "If passed, these bills could open the door to wider stablecoin adoption, regulated tokenization, and on-chain financial products with full legal backing," he noted. Note that the implied volatility is direction-agnostic, meaning the expected 13% swing may not necessarily be bullish and can unfold in either direction. That said, XRP is currently exhibiting strong bullish momentum, trading over 5% higher on the day at $3, the level not seen since early February, according to CoinDesk data. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
