Check out his recent live analysis and options trade for the NFLX earnings report completely free. Additional functions we provide users the option to change cursor color and size, use a printing mode. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.Įach week, our very own Dave Bartosiak gives his top options trades. Ewa Bartosiak: IIId: 16: Ewa Wokowska: IIIe: 40: Jadwiga Pulkowska: IIIf: 15: Agnieszka Naszydowska: godz. This is a strategy many seasoned traders use because it captures decay. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Given the way analysts feel about L Brands right now, this huge implied volatility could mean there’s a trade developing. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.99 per share to $1.98 in that period.
Over the last 30 days, five analysts have increased their earnings estimates for the current quarter, while four have dropped their estimates. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.Ĭlearly, options traders are pricing in a big move for L Brands shares, but what is the fundamental picture for the company? Currently, L Brands is a Zacks Rank #2 (Buy) in the Retail – Apparel and Shoes industry that ranks in the Top 23% of our Zacks Industry Rank. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. 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.
Implied volatility shows how much movement the market is expecting in the future. That is because the $30 Call had some of the highest implied volatility of all equity options today.
LB need to pay close attention to the stock based on moves in the options market lately.
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