All articles tagged with #implied volatility
NVDA faces a delicate post-earnings setup: options positioning is bullish but implied volatility is primed to collapse from around 60% to 30%, which would squeeze option premiums regardless of earnings. To profit on calls, NVDA needs to clear roughly $200; if it stalls, gamma hedging and call unwinds could push shares toward support near $170.
The article discusses the expected earnings reports and implied stock moves based on options prices for several major companies on August 4, 2025, highlighting the importance of options activity in predicting stock movements and offering tools for investors to analyze these moves.
The article discusses upcoming earnings reports for major companies from August 4-8, highlighting how implied volatility tends to spike before earnings and drop afterward. It provides expected stock move ranges based on options data, suggesting trading strategies like spreads and iron condors, and also mentions using stock screeners to find stocks with high implied volatility.
Bitcoin's implied volatility has surged to a three-month high as markets brace for the upcoming U.S. presidential election, reflecting increased risk premiums. Deribit's bitcoin volatility index rose to 63.24%, while BTC's seven-day implied volatility hit 74.4%, indicating heightened market uncertainty. This volatility spike is mirrored in traditional markets, with U.S. Treasury notes and EUR/USD also experiencing significant volatility increases. The election's outcome, particularly in swing states, is closely watched, impacting both political and financial landscapes.
Bitcoin's upcoming reward halving is not expected to cause a significant increase in volatility, despite an uptick in implied volatility leading up to the event. Greg Magadini of Amberdata believes that the highly predictable nature of the halving makes paying a volatility premium unworthy. While traders typically bet on volatility ahead of uncertain events, the impact of Bitcoin's halving on its price and miners has been well-documented, with historical rallies following previous halvings. The 30-day implied volatility for Bitcoin has increased, but Magadini suggests that options implied volatility is overpricing the event.
The options market for Canoo Inc. (GOEV) is indicating high implied volatility, suggesting that investors are expecting a significant move in the stock. Analysts have mixed opinions, with one increasing earnings estimates for the current quarter. Options traders may see an opportunity in the high implied volatility to sell premium and capture decay, potentially reducing risk.
The VIX, a measure of market volatility, may be poised to rise as various factors indicate potential upward pressure. Option flows and seasonality are supportive of the VIX holding at or above 14, while historical trends and market mechanics suggest a potential increase in volatility. With the expiration of a significant amount of gamma and unfavorable seasonality, the VIX could see a surge, prompting investors to seek hedges ahead of the March 20 FOMC meeting.
The debut of Bitcoin spot ETFs has led to a crash in implied volatility, serving as a lesson for speculators eyeing an Ether ETF. Traders are advised to monitor options pricing for clues on Ether's potential performance ahead of and following a potential ETF launch. The crash in Bitcoin's implied volatility post-ETF approval highlights the risk of holding a long volatility exposure on the day of the announcement, suggesting a potential strategy shift for Ether traders. Several firms have filed applications for spot Ether ETFs, with potential approval deadlines in May and August.
Lowe's is set to report earnings, and the options market is expecting a 4.2% move in either direction. One strategy to take advantage of the high implied volatility is to sell a cash-secured put in Lowe's stock. This involves selling an at-the-money or out-of-the-money put option while setting aside enough cash to buy the stock if assigned. By selling the Aug. 25-expiring put option with a strike price of 217.50, traders can generate around $3.75 in premium per contract. If the stock stays above the strike price at expiry, the put option expires worthless, resulting in a 1.75% return on capital at risk. However, there is a risk of loss if the stock falls significantly. Cash-secured puts can be a way to generate a return on stocks the trader is willing to own.
The spread between AMC Entertainment Holdings' common and preferred shares widened as a settlement in the company's conversion dispute appears unlikely in the next two months, according to a Delaware hearing. The judge tentatively suggested June 29 or June 30 for a settlement hearing. The ongoing court case adds uncertainty and makes trades more costly for many. Implied volatility for AMC July options surged as traders piled in to hedge against a possible settlement at the end of June.