ATEX Jumps +19.3% on Latest Earnings, Trade IV Crash or IV Cluster?

WealthSquad
06-27

$Anterix(ATEX)$ Stock Jumps +19.3% on Latest Earnings Release on Jun 26, 2024 AMC.

So far in trading after hours, ATEX stock price has soared +19.3% to $37.00 at the time of this alert. ATEX just released earnings today after the market closed. The price has moved outside of its expected range of ± 8.3%.

ATEX Post Earnings MovementATEX Post Earnings Movement

Analysis from https://marketchameleon.com/

The options prices predicted a ±8.3% post earnings move, compared to a +19.3% actual move. The options market overestimated ATEX stocks earnings move 69% of the time in the last 13 quarters. The predicted move after earnings announcement was ±7.3% on average vs an average of the actual earnings moves of 6.7% (in absolute terms).

How do traders use the implied volatility (IV) crush in ATEX options trading?

After a stock announces earnings typically two things occur for options prices.

  1. There is a stock reaction or earnings move and the options prices react to that move.

  2. The options implied volatility decreases because the news is out and the event is over.

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Comments

  • KSR
    06-28
    KSR
    👍
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