Advertisement
Singapore markets close in 1 hour 51 minutes

  • Straits Times Index

    3,139.20
    -44.41 (-1.39%)
     

  • Nikkei

    38,471.20
    -761.60 (-1.94%)
     

  • Hang Seng

    16,227.48
    -372.98 (-2.25%)
     

  • FTSE 100

    7,965.53
    0.00 (0.00%)
     

  • Bitcoin USD

    63,275.65
    -3,016.68 (-4.55%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • S&P 500

    5,061.82
    -61.59 (-1.20%)
     

  • Dow

    37,735.11
    -248.13 (-0.65%)
     

  • Nasdaq

    15,885.02
    -290.08 (-1.79%)
     

  • Gold

    2,389.50
    +6.50 (+0.27%)
     

  • Crude Oil

    85.64
    +0.23 (+0.27%)
     

  • 10-Yr Bond

    4.6280
    0.0000 (0.00%)
     

  • FTSE Bursa Malaysia

    1,536.85
    -5.68 (-0.37%)
     

  • Jakarta Composite Index

    7,175.74
    -111.15 (-1.53%)
     

  • PSE Index

    6,404.97
    -157.46 (-2.40%)
     

Options Traders Expect Huge Moves in Infinity Pharmaceuticals (INFI) Stock

Zacks Equity Research
Updated
MEET vs. WDAY: Which Stock Is the Better Value Option?

Investors in Infinity Pharmaceuticals, Inc. INFI need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 17th 2017 $3.00 Call 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. 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 Infinity Pharmaceuticals, but what is the fundamental picture for the company? Currently, Infinity Pharmaceuticals is a Zacks Rank #3 (Hold) in  Medical - Drugs industry that ranks in the Top 37% of our Zacks Industry Rank. Over the last 60 days, our Zacks Consensus Estimate for the current quarter has moved from a loss of 22 cents per share to a loss of 24 cents in that period.

ADVERTISEMENT

Given the way analysts feel about Infinity Pharmaceuticals 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. 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?

Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLXearnings report completely free. See it here: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:

 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Infinity Pharmaceuticals, Inc. (INFI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.