Buyers in AGNC Funding Corp. AGNC have to pay shut consideration to the inventory primarily based on strikes within the choices market currently. That’s as a result of the Nov. 29, 2024 $4.00 Put had a number of the highest implied volatility of all fairness choices right this moment.
What’s Implied Volatility?
Implied volatility exhibits how a lot motion the market is anticipating sooner or later. Choices with excessive ranges of implied volatility recommend that traders within the underlying shares expect a giant transfer in a single route or the opposite. It may additionally imply there may be an occasion arising quickly which will trigger a giant 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 Assume?
Clearly, choices merchants are pricing in a giant transfer for AGNC Funding shares, however what’s the basic image for the corporate? Presently, AGNC Funding is a Zacks Rank #4 (Promote) within the REIT and Fairness Belief trade that ranks within the Prime 32% of our Zacks Business Rank. Over the past 60 days, no analysts have elevated their earnings estimates for the present quarter, whereas three analysts have revised their estimates downward. The online impact has taken our Zacks Consensus Estimate for the present quarter from 50 cents per share to 42 cents in that interval.
Given the best way analysts really feel about AGNC Funding proper now, this large implied volatility may 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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AGNC Investment Corp. (AGNC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
