Thursday, February 02, 2017 9:30:14 AM
Today 8:39 AM ET (Zacks.com)Print
Investors in Under Armour, Inc. UAAneed to pay close attention to the stock based on moves in the options market lately. That is because the February 17th, 2017 $45 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 Under Armour shares, but what is the fundamental picture for the company? Currently, Under Armour is a Zacks Rank #3 (Hold) in the Textile-Apparel industry that ranks in the Bottom 17% of our Zacks Industry Rank. Over the last 60 days, 1 analysts has increased their earnings estimates for the current quarter, while no analysts has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from earnings of 3 cents per share to earnings of 4 cents in that period.
Given the way analysts feel about Under Armour 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 NFLX earnings report completely free. See it here: Bartosiak: Trading Netflix (NFLX) Earnings with Optionsor check out the embedded video below for more details:
Recent UA News
- MILAYSIA FULWILEY SIGNS WITH CURRY BRAND • PR Newswire (US) • 03/15/2024 02:00:00 PM
- UNDER ARMOUR ANNOUNCES LEADERSHIP TRANSITION • PR Newswire (US) • 03/13/2024 08:30:00 PM
- UNDER ARMOUR REPORTS THIRD QUARTER FISCAL 2024 RESULTS; TIGHTENS FISCAL 2024 OUTLOOK • PR Newswire (US) • 02/08/2024 11:55:00 AM
- UNDER ARMOUR ANNOUNCES THIRD QUARTER FISCAL 2024 EARNINGS CONFERENCE CALL DATE • PR Newswire (US) • 01/25/2024 01:00:00 PM
- Celanese and Under Armour Develop Innovative New NEOLAST™ Fiber for Use in Performance Stretch Fabrics • Business Wire • 01/22/2024 02:00:00 PM
- UNDER ARMOUR BOLSTERS LEADERSHIP TEAM WITH APPOINTMENT OF NEW CHIEF PRODUCT OFFICER AND NEW PRESIDENT OF AMERICAS • PR Newswire (US) • 01/12/2024 01:00:00 PM
- UNDER ARMOUR REPORTS SECOND QUARTER FISCAL 2024 RESULTS; UPDATES FISCAL 2024 OUTLOOK • PR Newswire (US) • 11/08/2023 11:55:00 AM
- DE'AARON FOX SIGNS WITH CURRY BRAND • PR Newswire (US) • 10/26/2023 02:30:00 PM
- UNDER ARMOUR ANNOUNCES SECOND QUARTER FISCAL 2024 EARNINGS CONFERENCE CALL DATE • PR Newswire (US) • 10/11/2023 12:00:00 PM
- UNDER ARMOUR REPORTS FIRST QUARTER FISCAL 2024 RESULTS; MAINTAINS FISCAL 2024 OUTLOOK • PR Newswire (US) • 08/08/2023 10:55:00 AM
- UNDER ARMOUR LAUNCHES NEW "UA REWARDS" LOYALTY PROGRAM • PR Newswire (US) • 08/01/2023 12:00:00 PM
- UNDER ARMOUR ANNOUNCES FIRST QUARTER FISCAL 2024 EARNINGS CONFERENCE CALL DATE • PR Newswire (US) • 07/12/2023 08:15:00 PM
- UNDER ARMOUR ANNOUNCES CHANGES TO EXECUTIVE LEADERSHIP TEAM • PR Newswire (US) • 06/28/2023 01:00:00 PM
- BDT & MSD PARTNERS INVEST IN UNDER ARMOUR • PR Newswire (US) • 05/31/2023 10:30:00 PM
- UNDER ARMOUR REPORTS FOURTH QUARTER AND FULL-YEAR FISCAL 2023 RESULTS; PROVIDES INITIAL FISCAL 2024 OUTLOOK • PR Newswire (US) • 05/09/2023 10:55:00 AM
- UNDER ARMOUR ANNOUNCES ITS FOURTH QUARTER AND FULL YEAR FISCAL 2023 EARNINGS CONFERENCE CALL DATE • PR Newswire (US) • 04/24/2023 12:00:00 PM
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