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
On Tuesday, individual stocks with high implied volatility$FibroGen (FGEN.US)$,$Microvision (MVIS.US)$,$U Power (UCAR.US)$.
1.$Microvision (MVIS.US)$It soared 30% overnight, and the implied volatility rose nearly 70% to a one-year high. Options trading volume soared to 74,000. Only 19,000 were traded the day before, with a sell-to-purchase ratio of 0.34. Among them, the expiration date was June 9, and call options with exercise prices of 8 US dollars and 7 US dollars respectively were favored by capital, and 7,231 and 6,632 were sold respectively.
2. Immunotherapy companies$ImmunityBio (IBRX.US)$It surged nearly 18%, the implied volatility continued to rise 13% to 128%, and the options trading volume was 5,430.
According to the news, company director BLASZYK MICHAEL D increased his common stock holdings by 71,900 shares at an average price of 2.75 US dollars per share on June 5, worth about 198,000 US dollars; director Brennan John Owen increased 25,000 common shares at an average price of 2.83 US dollars per share on June 2, worth about 70,700 US dollars; director Clark Wesley increased 7,000 common shares at an average price of 291 US dollars per share on June 1, worth about 20,400 US dollars.
3. Renewable Fuels and Biochemical Companies$Aemetis (AMTX.US)$There was a sharp increase of 20%, and the implied volatility rose slightly to 153%, which is at a high level in a year. It is worth noting that the company has risen more than 75% this year.
II. Top 10 increases in implied volatility of options
African agricultural fintech company$Tingo Group (TIO.US)$Overnight, it plummeted 48%. Among them, the percentage change in put option IV, which expired on July 21 and had an exercise price of $2, soared 95%.
According to the news, Hindenburg Research, a well-known American shorting agency, released a report saying that it is shorting African agricultural fintech company Tingo Group, adding that the latter is a worthless and shameless fraud company.
Tingo is headquartered in the US, but its main business is in Nigeria. By providing Tingo mobile phones, Tingo provides personal communication services to online users within and outside the agricultural sector in Nigeria, as well as a range of fintech and market platform services.
However, according to the Hindenburg investigation, although Tingo claims to have 12 million mobile users, the local government department in Nigeria has no record of any Tingo mobile communication license.
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.
IV. Disclaimer
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.
Editor/Somer