Latest news with #optionsmarket
Globe and Mail
2 days ago
- Business
- Globe and Mail
Do Options Traders Know Something About Thor Industries Stock We Don't?
Investors in Thor Industries, Inc. THO need to pay close attention to the stock based on moves in the options market lately. That is because the Sept 19, 2025 $105.00 Put 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 Thor Industries, but what is the fundamental picture for the company? Currently, Thor Industries is a Zacks Rank #3 (Hold) in the Building Products - Mobile Homes and RV Builders industry that ranks in the Bottom 4% of our Zacks Industry Rank. Over the last 60days, no analysts have increased their estimate for the current quarter, while five have revised their estimate downwards. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $1.72 per share to $1.25 in the same time period. Given the way analysts feel about Thor Industries 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? Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk. Click to see the trades now >> 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thor Industries, Inc. (THO): Free Stock Analysis Report
Bloomberg
17-07-2025
- Business
- Bloomberg
Traders Bet on Deeper BOE Cuts, Brushing Aside Inflation Fears
Some traders have placed wagers in the UK options market that could net a more than 1,000% return if the Bank of England ignores inflation at an eighteen month high and delivers more cuts this year than rates pricing suggests. The bets were initiated on Thursday by purchasing option strategies tied to the Sterling Overnight Index Average rate — a proxy for policy rates. They'll pay out out almost £20 million ($26.8 million) on initial outlays of around £1.5 million if the benchmark rate falls to 3.5% this year — a quarter point more than money markets are currently implying.
Reuters
13-07-2025
- Business
- Reuters
India's ban on Jane Street hits options volumes; rebound expected in coming weeks
July 10 (Reuters) - The Indian markets regulator's ban on Wall Street trading giant Jane Street has squeezed volumes in the country's options market, but traders expect activity to snap back as larger investors step in. The Securities and Exchange Board of India (SEBI) on July 4 barred Jane Street from trading and froze $567 million of its funds for manipulation of stock indexes through derivative positions. Jane Street told staff it plans to challenge the order, calling the trades in question "basic index arbitrage." Since the order, index options premium turnover on the NSE and BSE exchanges declined on a week-on-week basis in four of five sessions. This metric — representing the total value of premiums paid to buy index options like the Nifty 50 — serves as a key indicator of real capital at play, risk appetite, and overall sentiment in the derivatives market. While premium turnover rose last Friday, it has fallen in every session this week. "The ripple effects of the Jane Street episode are expected to linger in the near term, with index options activity showing a noticeable dip as traders reassess risk appetite amid regulatory uncertainty," said Rajesh Baheti, managing director of Crosseas Capital Services, a Mumbai-based proprietary trading firm. Baheti said this may be temporary. "If proprietary trading firms regain confidence in market transparency and regulatory clarity, activity could rebound meaningfully within four to six weeks," he said. Proprietary traders have largely stayed on the sidelines since the ban, reflected in persistently low volumes, with both turnover and the number of unique clients in the derivatives segment declining, two analysts said. "The dip in index options activity reflects growing market jitters, triggered by the Jane Street ban, global tensions, and shifting trade policies," said Shitij Gandhi, senior research analyst - technicals at SMC Global Securities. Options market activity may have also declined due to a delay in U.S. President Donald Trump's tariff deadline to August 1, which prompted market participants to pull back on aggressive hedging. Jane Street, SEBI says, traded most aggressively in derivatives linked to the Bank Nifty index and its 12 constituent stocks. The Wall Street trader's exit from the market has also pulled down trading volumes in these stocks. Aggregate trading volumes in the Nifty Bank index (.NSEBANK), opens new tab have halved in five sessions ending Thursday, dropping to 495.75 million shares from 1.02 billion shares in the five sessions preceding the ban. "In the very near term, some dent in trading activity is inevitable since Jane Street was a dominant force in derivatives, but this saga alone can't explain the drop in Bank Nifty volumes," said Kranthi Bathini, director of equity strategy at WealthMills Securities. "Once the global markets stabilise and trade worries ease, volumes are likely to bounce back," Bathini said.
Bloomberg
13-07-2025
- Business
- Bloomberg
Mysterious Option Trades Put Spotlight on Key Indian Stock Index
As India's securities regulator ramps up scrutiny of the options market, some investors are pointing to mysterious moves in contracts tied to the nation's benchmark index as evidence of questionable trading activity. Traders say one tell-tale sign of abnormal price action can be seen in the so-called straddle on the NSE Nifty 50 Index. A hard-to-explain increase in its price during expiration days has become a common sighting in recent years, though it doesn't always happen. It was visible as recently as mid-May.
Yahoo
09-07-2025
- Business
- Yahoo
Do Options Traders Know Something About OneMain Holdings Stock We Don't?
Investors in OneMain Holdings, Inc. OMF need to pay close attention to the stock based on moves in the options market lately. That is because the Aug. 15, 2025 $27.50 Put had some of the highest implied volatility of all equity options today. 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. Clearly, options traders are pricing in a big move for OneMain Holdings shares, but what is the fundamental picture for the company? Currently, OneMain Holdings is a Zacks Rank #4 (Sell) in the Financial - Consumer Loans industry that ranks in the Bottom 32% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.50 per share to $1.51 in that period. Given the way analysts feel about OneMain Holdings right now, this huge implied volatility could mean there's a trade developing. Oftentimes, 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. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk. Click to see the trades now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
