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Is the Options Market Predicting a Spike in AcelRx (ACRX) Stock?

Is the Options Market Predicting a Spike in AcelRx (ACRX) Stock?

Investors in AcelRx Pharmaceuticals, Inc. ACRX need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 20, 2020 $2.50 Call 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 AcelRx shares, but what is the fundamental picture for the company? Currently, AcelRx is a Zacks Rank #3 (Hold) in the Medical – drugs industry that ranks in Bottom 24% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimates for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 11 cents per share to a loss of 7 cents in that period.

Given the way analysts feel about AcelRx right now, this huge implied volatility could mean there’s a trade developing. Often times, 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.

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Stephen Moore doubts need for $2T stimulus, predicting US economic growth

Stephen Moore doubts need for $2T stimulus, predicting US economic growth

Stephen MooreStephen MooreOn The Money: Trump gambles with new stimulus strategy | Trump cannot block grand jury subpoena for his tax returns, court rules | Long-term jobless figures rise, underscoring economic pain Trump gambles with new stimulus strategy Trump economist touts nation’s low poverty rate MORE, an economist and adviser to President TrumpDonald John TrumpNorth Korea unveils large intercontinental ballistic missile at military parade Trump no longer considered a risk to transmit COVID-19, doctor says New ad from Trump campaign features Fauci MORE, said he doesn’t think the country needs a $2.2 trillion stimulus package to help the economic recovery from the coronavirus pandemic, predicting that growth would happen naturally. 

“The economy really is showing signs of picking up. I don’t care what the newspapers say,” he said Sunday on John Catsimatidis’s radio show on WABC 770.

“I see really strong numbers coming in for the third quarter… 30 percent to 35 percent growth, which shatters the all-time record for growth in one quarter.”

“At this point, I’m not so sure we need a $2 trillion stimulus bill,” he added. “I think the fourth quarter will be just as strong as the third quarter.”

At the start of the month, House Democrats passed a $2.2 trillion stimulus package amid stalled negotiations between House Democratic leadership and the White House. The $2.2 trillion price tag is less than the mammoth $3 trillion stimulus bill the lower chamber passed in May of this year. 

The Senate GOP have put forth a paired down bill with a price tag of $1.1 trillion in late July, though Democrats immediately rejected the sum, saying that it was not enough to address the economic and health impacts of COVID-19. 

The remarks come amid negotiations on a stimulus deal between Speaker Nancy Pelosi

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Is the Options Market Predicting a Spike in Gulfport Energy (GPOR) Stock?

Is the Options Market Predicting a Spike in Gulfport Energy (GPOR) Stock?

Investors in Gulfport Energy Corporation GPOR need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 15, 2021 $1.00 Call 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 Gulfport Energy shares, but what is the fundamental picture for the company? Currently, Gulfport Energy is a Zacks Rank #1 (Strong Buy) in the Oil and Gas – Exploration and Production – United States industry that ranks in Top 34% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 21 cents per share to a loss of 20 cents in that period.

Given the way analysts feel about Gulfport Energy right now, this huge implied volatility could mean there’s a trade developing. Often times, 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

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Is the Options Market Predicting a Spike in Evolus (EOLS) Stock?

Is the Options Market Predicting a Spike in Evolus (EOLS) Stock?

Investors in Evolus, Inc. EOLS need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 20, 2020 $4.00 Call 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 Evolus shares, but what is the fundamental picture for the company? Currently, Evolus is a Zacks Rank #2 (Buy) in the Medical – Products industry that ranks in the Top 48% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has narrowed our Zacks Consensus Estimate for the current quarter from a loss of 68 cents per share to a loss of 50 cents in that period.

Given the way analysts feel about Evolus 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.

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Is the Options Market Predicting a Spike in Kala Pharmaceuticals (KALA) Stock?

Is the Options Market Predicting a Spike in Kala Pharmaceuticals (KALA) Stock?

Investors in Kala Pharmaceuticals, Inc. KALA need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 20, 2020 $10.00 Call 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 Kala Pharmaceuticals shares, but what is the fundamental picture for the company? Currently, Kala Pharmaceuticals is a Zacks Rank #3 (Hold) in the  Medical – Biomedical and Genetics industry that ranks in the Bottom 26% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has widened our Zacks Consensus Estimate for the current quarter from a loss of 42 cents per share to a loss of 44 cents in that period.

Given the way analysts feel about Kala Pharmaceuticals 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

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