Traders in Cue Biopharma, Inc. CUE have to pay shut consideration to the inventory primarily based
Traders in Cue Biopharma, Inc. CUE have to pay shut consideration to the inventory primarily based on strikes within the choices market currently. That’s as a result of the Jul 16, 2021 $2.50 Put had among the highest implied volatility of all fairness choices at the 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 an enormous transfer in a single path or the opposite. It may additionally imply there’s an occasion developing quickly that will trigger an enormous rally or an enormous sell-off. 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 Cue Biopharma shares, however what’s the elementary image for the corporate? Presently, Cue Biopharma is a Zacks Rank #3 (Maintain) within the Medical – Biomedical and Genetics trade that ranks within the Backside 19% of our Zacks Business Rank. Over the past 60 days, two analysts have elevated their earnings estimates for the present quarter, whereas one has dropped the estimates. The online impact has narrowed our Zacks Consensus Estimate for the present quarter from a lack of 37 cents per share to a lack of 34 cents in that interval.
Given the way in which analysts really feel about Cue Biopharma proper now, this large implied volatility may imply there’s a commerce creating. Oftentimes, choices merchants search for choices with excessive ranges of implied volatility to promote premium. This can be 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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Cue Biopharma, Inc. (CUE): Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.