Implied volatility (IV) is an estimate of a stock's price change during the year. It reflects investors' expectations about the extent of future price fluctuations, and is a key factor in option pricing. The implied volatility of stocks is high, which indicates that market sentiment is extreme. Higher price fluctuations mean greater uncertainty; conversely, low volatility indicates that the market expects less price fluctuations and less uncertainty.
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I. Implied Volatility of Individual Stocks (IV) Change List
What are the individual stocks with the highest implied volatility on Wednesday$Microvision(MVIS.US)$,$FibroGen(FGEN.US)$,$PacWest Bancorp(PACW.US)$etc.
$Microvision(MVIS.US)$Stock prices have doubled this month, and overnight implied volatility soared 90% to 212% close to a one-year high.The number of options traded was close to 17,000. Call options that expired on June 2 and had an exercise price of 4 US dollars had the highest trading volume, 5,940.
biopharmaceutical companies$FibroGen(FGEN.US)$Implied volatility continues to rise, rising more than 7% yesterday to its highest level in a year.Earlier, the company stated that it intends to apply to the relevant regulatory authorities for the new range of indications for the new anemia drug roxadustat (roxadustat).
A sharp drop of nearly 50% during the month!$Icahn Enterprises(IEP.US)$Overnight, implied volatility rose more than 35%, close to its highest level in a year.
Recently, Icahn Enterprise became the target of the shorting agency Hindenburg, and its market capitalization has evaporated to about 6 billion US dollars. Hedge fund mogul Ackman posted a long tweet saying that Icahn's situation reminded him of the 2021 Archegos hold-up incident.
He pointed out that Icahn's premium has always been maintained by a high dividend yield. The income is generated by returning capital to external shareholders, and this capital in turn comes from the company's stock sales to investors. It also stated that the IEP's performance history and governance structure are insufficient to justify the premium; on the contrary, they suggest that it is appropriate to make a substantial discount on its net asset value.
II. Top 10 increases in implied volatility of options
III. Risk Reminder
An option is a contract that gives a holder the right, but no obligation, to buy or sell an asset at a fixed price on or at any time prior to that date. The price of an option is affected by a number of factors, including the underlying asset's current price, exercise price, expiration time, and implied volatility.
The implied volatility reflects the market's expectations for options to fluctuate over a period of time to come. It is data inverted by the options BS pricing model, and is generally viewed as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay higher options to help hedge risks, leading to higher implied volatility.
Traders and investors use implied volatility to assess the appeal of option prices, identify potential mispricing, and manage risk exposure.
This content does not constitute an offer, solicitation, recommendation, opinion or guarantee of any securities, financial products or instruments. The risk of losing money when trading options can be extremely high. In some cases, you may lose more than the amount of your initial deposit. Even if you set backup instructions, such as “stop corrosion” or “limit price” instructions, you may not be able to avoid losses. Market conditions may make such instructions unenforceable. You may be asked to deposit an additional security deposit within a short period of time. If you fail to provide the required amount within the specified time, your open positions may be closed. However, you are still responsible for any shortfall in your account as a result. Therefore, you should study and understand options before trading, and carefully consider whether this type of trading is suitable for you based on your financial situation and investment goals. If you trade options, you should be familiar with the procedures for exercising options and when they expire, as well as your rights and responsibilities when you exercise options and when they expire.