Recent options trading in Valley National Bancorp (VLY) has drawn attention, with the Sept. 18, 2026 $20 put contract showing elevated implied volatility that points to expectations of a meaningful catalyst for the stock.

At a share price of $14.65, Valley National Bancorp has shown firm momentum, with an 11.32% 90 day share price return and a 63.01% 1 year total shareholder return that options traders appear to be weighing against potential changes in the company’s risk profile.

If this kind of options driven setup has your attention, it can also be a good moment to widen your search and review the 19 top founder-led companies

After a 63.01% 1 year total return and rising interest around those $20 puts, the key issue for Valley National Bancorp now is simple. Does the current valuation still leave meaningful upside, or has the recent run already captured most of it?

Most Popular Narrative: 9.8% Undervalued

The most followed narrative for Valley National Bancorp pegs fair value at $16.25, which sits above the recent $14.65 close and frames those active $20 put positions against a thesis of moderate undervaluation based on long term earnings power and funding mix improvements.

Valley's accelerating growth in commercial & specialty deposit accounts, driven by technology investments and targeted market penetration, is likely to yield structurally lower funding costs and enhanced net interest margin as legacy brokered deposits are replaced with lower-cost core deposits. This would directly support revenue and margin expansion.

Read the complete narrative. Read the complete narrative.

Curious what sits behind that fair value gap for Valley National Bancorp. The narrative leans heavily on compound revenue growth, fatter margins, and a future earnings multiple that assumes the current profitability upswing can be sustained. The exact mix of top line growth, margin shifts, and share count moves is where the story gets interesting.

Result: Fair Value of $16.25 (UNDERVALUED)

However, you also need to watch for pressure points that could flip the Valley National Bancorp story, particularly any setback in credit quality or an increase in long term compliance costs.

Next Steps

If this mix of options activity and valuation talk around Valley National Bancorp feels compelling, treat it as a prompt to review the numbers yourself and move quickly to form your own view. A helpful place to start is by checking the 4 key rewards

Looking for more investment ideas beyond Valley National Bancorp?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.