Traders in Caleres, Inc. CAL must pay shut consideration to the inventory based mostly on strikes within the choices market recently. That’s as a result of the Oct. 17, 2025 $42.5 Name had a few of the highest implied volatility of all fairness choices as we speak.
What’s Implied Volatility?
Implied volatility reveals how a lot motion the market is anticipating sooner or later. Choices with excessive ranges of implied volatility counsel that traders within the underlying shares predict an enormous transfer in a single route or the opposite. It might additionally imply there may be an occasion developing quickly that will trigger an enormous rally or an enormous sell-off. Nonetheless, implied volatility is just one piece of the puzzle when placing collectively an choices buying and selling technique.
What do the Analysts Suppose?
Clearly, choices merchants are pricing in an enormous transfer for Caleres shares, however what’s the elementary image for the corporate? Presently, Caleres is a Zacks Rank #4 (Promote) within the Sneakers and Retail Attire trade that ranks within the Backside 15% of our Zacks Trade Rank. Over the past 60 days, no analyst has elevated the earnings estimates for the present quarter, whereas two have dropped their estimates. The online impact has taken our Zacks Consensus Estimate for the present quarter from 55 cents per share to 27 cents in that interval.
Given the best way analysts really feel about Caleres proper now, this big implied volatility might imply there’s a commerce growing. Oftentimes, choices merchants search for choices with excessive ranges of implied volatility to promote premium. It is a technique many seasoned merchants use as a result of it captures decay. At expiration, the hope for these merchants is that the underlying inventory doesn’t transfer as a lot as initially anticipated.
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Caleres, Inc. (CAL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
