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- Since Jul 15, 2022, $2.50 had placed some of the highest implied volatility among equity options today, Stocks based on moves in the options market require close attention from investors in Argo Blockchain.
- In a major move, options traders are pricing for Argo Blockchain shares. Argo Blockchain is a Zacks Rank #3 (Hold) in the Technology Services industry that ranks in the Bottom 26% of our Zacks Industry Rank.
- At expiration, the hope of the underlying stocks not moving as much as initially thought serves as the hope for these traders.
Stocks based on moves in the options market lately need close attention from investors in Argo Blockchain plc ARBK since Jul 15, 2022, $2.50 had placed some of the highest implied volatility among equity options today.
Implied Volatility: An Overview
The movements that the market is expecting in the future are exhibited by Implied volatility. Investors in underlying stocks predict a major move in either direction suggesting options with high levels of implied volatility.
This could also mean that there is an event that’s going to happen soon that can result in a huge sell-off or big rally. But, implied volatility is only one aspect of the options trading strategy.
What Do Analysts Think?
Options traders are pricing for Argo Blockchain shares in a major move. Argo Blockchain is a Zacks Rank #3 (Hold) in the Technology Services industry which ranks in the last 26% of their Zacks Industry Rank.
While one analyst has revised the estimate downward, no analysts have increased their earnings estimates for the ongoing quarter, over the last 60 days. In that period, the net effect for the current quarter has taken our Zacks Consensus Estimate from 44 cents per share to 26 cents.
Currently, considering the way analysts feel about Argo Blockchain right now, this massive implied volatility could mean there’s a trade evolving. For selling premium, Options Traders search for options with high levels of implied volatility. Since it captures decay, this is a strategy many seasoned traders use.
The underlying stocks do not move as much as initially thought, which is the hope for these traders, at expiration.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
