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
The US banking crisis continues to ferment! overnight$PacWest Bancorp(PACW.US)$There was a sharp drop of nearly 23%, the implied volatility rose to a high level of 98% in a year, and the number of options traded reached 209,000.The bank released a report saying that deposits lost 9.5% in the first week of May and plans to complete the sale of strategic assets in the second quarter to improve liquidity and capital adequacy ratios.
ChatGPT concept stock$SoundHound AI(SOUN.US)$The current IV percentile is 57%The number of options traded reached 15,600, more than double the year-on-year increase from the average daily transaction. Call options with exercise prices of $3 and $2.5, which expire on May 12, were the most active.
Next week the US Congress will hold its most compelling AI-themed hearing ever. At that time, OpenAI CEO Sam Altman will testify and address the Senate subcommittee responsible for overseeing AI development.
American Biotech Pharmaceutical Company$Sarepta Therapeutics(SRPT.US)$Yesterday, 43,200 securities were traded, and the implied volatility rose more than 19% to the highest level in a year, with a sell-to-purchase ratio of 1.1.
The US FDA Cellular Gene Therapy Advisory Committee will hold a review meeting on May 12 to review Sarepta's Duchenne Muscular Dystrophy (DMD) research gene therapy. However, the FDA recently published a briefing questioning the efficacy and safety of the company's gene therapy SRP-9001 for DMD.
SRP-9001 is an AAV gene therapy that combines the MHCK7 promoter with an AAVRH74 carrier to specifically deliver genes that encode micronutrient proteins to muscle tissue, thereby producing micromuscular dystrophic proteins to treat DMD.It is currently the most likely gene therapy for DMD to be approved for marketing.
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.