Investors in Atlas Air Worldwide Holdings, Inc. need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 19, 2022 $40.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Atlas Air Worldwide shares, but what is the fundamental picture for the company? Currently, Atlas Air Worldwide is a Zacks Rank #2 (Buy) in the Transportation - Air Freight and Cargo industry that ranks in the Top 17% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter from $4.29 per share to $4.50 in that period.
Given the way analysts feel about Atlas Air Worldwide right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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Investors in Atlas Air Worldwide Holdings, Inc. need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 19, 2022 $40.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Atlas Air Worldwide shares, but what is the fundamental picture for the company? Currently, Atlas Air Worldwide is a Zacks Rank #2 (Buy) in the Transportation - Air Freight and Cargo industry that ranks in the Top 17% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter from $4.29 per share to $4.50 in that period.
Given the way analysts feel about Atlas Air Worldwide right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.