Stock Volatility Alert | CAN(25.8%), AIOT(21.3%) And SWBI(12.4%): Top Potential Volatility in Options to Watch This Week
Accenture Plc Class A ACN | 197.06 | -0.62% |
CarMax, Inc. KMX | 40.31 | -3.05% |
PowerFleet, Inc. AIOT | 3.04 | -1.30% |
Lennar Corporation Class A LEN | 85.44 | -1.61% |
Jabil Inc. JBL | 271.96 | +2.38% |
This column is updated every Monday, featuring options volatility data for key earnings stocks in the upcoming week.
Option Volatility And Earnings Report For June 16- June 20
The Federal Reserve, Bank of Japan, Swiss National Bank, and Bank of England are set to hold rate-setting meetings this week. The Fed, BOJ, and BOE are expected to maintain current rates, with the Swiss National Bank being the outlier. On Thursday, June 19, the Fed will announce its latest rate decision. The futures market indicates a 99% probability of the Fed holding rates steady. Investors will be closely analyzing the updated economic forecasts and dot plot from the Fed's quarterly meeting for signals on future rate cuts.
As the earnings season winds down, companies like Accenture Plc(ACN.US) and CarMax, Inc.(KMX.US) will report this week.
Earnings reports often lead to heightened implied volatility in options due to market uncertainty, driving up demand and prices for options. However, implied volatility typically drops back to normal levels after the earnings announcement.
To estimate a stock's expected price range around earnings, traders can use the option chain by adding the prices of the at-the-money put and call options for the first expiry date after the earnings report. While this method provides a rough estimate, it is a useful tool for structuring trades.
Data as of 16/06/2025
| Day | Ticker | Potential Volatility |
|---|---|---|
| Monday | PowerFleet, Inc. - Common Stock(AIOT.US) | 21.3% |
| Lennar Corporation Class A(LEN.US) | 7.2% | |
| Tuesday | Jabil Circuit, Inc.(JBL.US) | 10.1% |
| Wednesday | GMS Inc.(GMS.US) | 10.0% |
| Thursday | SMITH AND WESSON BRANDS INC(SWBI.US) | 12.4% |
| Friday | Kroger Co.(KR.US) | 5.2% |
| Canaan Inc.(CAN.US) | 25.8% | |
| CarMax, Inc.(KMX.US) | 9.9% |
- Bearish traders can consider selling bear call spreads outside the expected range.
- Bullish traders may opt for selling bull put spreads outside the expected range or explore naked puts for higher risk tolerance.
- Neutral traders can utilize iron condors, ensuring the short strikes remain outside the expected range.
When trading options during earnings, it is crucial to use risk-defined strategies and maintain small position sizes. This ensures that even if a trade suffers a full loss due to an unexpected stock move, the impact on the overall portfolio remains limited to 1-3%.
Details on Options Strategies, Follow Here:
Disclaimer: This column is solely for information organization and sharing. All materials and data are sourced from publicly available markets and should not be used as a basis for investment decisions.