Traders in Flex Ltd. FLEX have to pay shut consideration to the inventory based mostly on strikes within the choices market currently. That’s as a result of the Apr 17, 2025 $29.00 Name had a few of the highest implied volatility of all fairness choices immediately.
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 recommend that buyers within the underlying shares expect an enormous transfer in a single route or the opposite. It may additionally imply there’s an occasion arising quickly that will trigger an enormous rally or an enormous dump. Nevertheless, 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 Flex shares, however what’s the basic image for the corporate? Presently, Flex is a Zacks Rank #2 (Purchase) within the Electronics – Miscellaneous Productsindustry that ranks within the Backside 42% of our Zacks Business Rank. Over the past 60 days, two analysts have elevated their estimates for the present quarter, whereas none have revised their estimate downwards. The online impact has taken our Zacks Consensus Estimate for the present quarter to maneuver from 66 cents per share to 69 cents in the identical time interval.
Given the way in which analysts really feel about Flex proper now, this large implied volatility may imply there’s a commerce growing. Typically occasions, 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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Flex Ltd. (FLEX) : 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.
