Buyers in SunPower Company SPWR must pay shut consideration to the inventory based mostly on strike
Buyers in SunPower Company SPWR must pay shut consideration to the inventory based mostly on strikes within the choices market currently. That’s as a result of the Jun 19, 2020 $7.00 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 predict a giant transfer in a single course or the opposite. It may additionally imply there may be an occasion arising quickly that 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 Suppose?
Clearly, choices merchants are pricing in a giant transfer for SunPower shares, however what’s the basic image for the corporate? At present, SunPower is a Zacks Rank #3 (Maintain) within the Photo voltaic business that ranks within the Backside 38% of our Zacks Trade Rank. During the last 30 days, one 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 12 cents per share to 15 cents in that interval.
Given the way in which analysts really feel about SunPower proper now, this…