Please use a PC Browser to access Register-Tadawul
Get It
Stock Volatility Alert | Market Volatility Intensifies! LOVE(24.6%), BYRN(21.1%) And More: Top Potential Volatility in Options to Watch This Week
JPMorgan Chase & Co. -1.28% Pre
Wells Fargo & Company -1.08% Pre
Morgan Stanley -2.64% Pre
BlackRock, Inc. -2.49% Pre
Levi Strauss & Co. +2.53% Pre
JPMorgan Chase & Co. JPM | 228.99 228.99 | -1.28% 0.00% Pre |
Wells Fargo & Company WFC | 64.01 64.01 | -1.08% 0.00% Pre |
Morgan Stanley MS | 106.30 107.70 | -2.64% +1.32% Pre |
BlackRock, Inc. BLK | 854.00 854.00 | -2.49% 0.00% Pre |
Levi Strauss & Co. LEVI | 15.02 15.02 | +2.53% 0.00% Pre |
This column is updated every Monday, featuring options volatility data for key earnings stocks in the upcoming week.
Option Volatility And Earnings Report For April 7- April 11
Trump's 10% global benchmark tariff rate has officially taken effect, with the more impactful reciprocal tariffs set to be implemented on April 9th, potentially leading to greater market volatility.
As the Q1 earnings season for US stocks begins this week, Wall Street giants will take the lead. Under the shadow of tariffs, investors are cautiously optimistic about corporate earnings prospects. Bank stocks such as JPMorgan Chase & Co.(JPM.US) , Wells Fargo & Company(WFC.US) , Morgan Stanley(MS.US) , and BlackRock, Inc.(BLK.US) will report first, with market focus on forward guidance and how these Wall Street institutions anticipate trade policies will affect their outlook.
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 4/04/2025
| Day | Ticker | Potential Volatility |
|---|---|---|
| Monday | Levi Strauss & Co.(LEVI.US) | 17.5% |
| Greenbrier Companies, Inc.(GBX.US) | 14.2% | |
| Tuesday | RPM International Inc.(RPM.US) | 9.2% |
| Cal-Maine Foods, Inc.(CALM.US) | 10.9% | |
| Wednesday | Delta Air Lines, Inc.(DAL.US) | 12.9% |
| Constellation Brands, Inc. Class A(STZ.US) | 10.1% | |
| Thursday | CarMax, Inc.(KMX.US) | 11.6% |
| Byrna Technologies Inc Ordinary Shares(BYRN.US) | 21.1% | |
| Lovesac Co.(LOVE.US) | 24.6% | |
| Friday | JPMorgan Chase & Co.(JPM.US) | 8.8% |
| Wells Fargo & Company(WFC.US) | 10.0% | |
| Morgan Stanley(MS.US) | 10.8% | |
| BlackRock, Inc.(BLK.US) | 7.1% |
- 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.
