Investing In The Options Market

Investing in the options market

Investing in the options market

Investors in Intra-Cellular Therapies, Inc. (NASDAQ:) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2020 $4.00 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.

Investing Basics: Options

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 Intra-Cellular Therapies shares, but what is the fundamental picture for the company?

Currently, Intra-Cellular Therapies is a Zacks Rank #2 (Buy) in the Medical – Biomedical and Genetics industry that ranks in the Top 25% 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.

Investing in the options market

The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of $1.23 per share to a loss of 91 cents in that period.

Given the way analysts feel about Intra-Cellular Therapies 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.

Investing in the options market

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 >>

Intra-Cellular Therapies Inc.

Modi per guadagnare 20 euro al giorno con il forex

(ITCI): Free Stock Analysis Report

Original post

Zacks Investment Research