There can be numerous reasons behind why options traders are betting on the big moves taking place in OVV stocks. Here are a few approaches as to why this is happening. Investors in OVV need to pay close attention to the company’s stocks based on moves and changes happening in the options market lately. That is because, on the date of Apr 17, 2020, a $5.00 that has been put had some of the highest implied volatility of all equity options as of today.
The term that first comes into action when you think of this is the implied volatility for choosing this option alone. Implied volatility shows just how much movement the market is expecting in the near or coming future. The options with very high levels of implied volatility often suggest that investors in the underlying stocks always tend to expect a big move in one direction or the other. It could also mean that there is an event coming up in the near future that may cause a big rally. However, this implied volatility is only one piece of the puzzle when we try to put together all the options in the trading strategy.
Usually, Analysts think of all of these major points before betting or investing in a company’s stock. Clearly, options traders are pricing in a big move for OVV shares, but the question we need to ask is “what is the fundamental picture for the company?” Currently, as per experts, NYSE: OVVat https://www.webull.com/quote/nyse-ovv is a Zack Rank 3 in the Oil and Gas and that it ranks in the Bottom 35% of the Zack’s Industry Rank.
Over the last 60 days, no analysts have tried to increase the earnings estimates for this current quarter, while three have effectively dropped their estimates. The net effect has taken on the Zacks Consensus Estimate for the current quarter from 78 cents per share to 43 cents in that time period.This is a strategy many of the seasoned traders use because it captures a lot of decay. At expiration, the hope for these traders is on the final underlying stock that does not move as much as originally expected by them.
If you are looking for trade options in this company here is what we would suggest. Check out the simple and effectively high-powered approach that Zacks Executive VP Kevin Matras has used to close. In addition to impressive profit potential, these trades can actually reduce your risk and increase any profits coming your way according to him. If you are new to stock trading and do not know much about stock trading like buying on margin definition, you can check more stock information at stock trading platforms. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.