Investors should monitor the options market closely for Metropolitan Bank Holding Corp. MCBs due to recent developments. The $7.50 call dated June 16, 2023, currently has the highest implied volatility for any stock option today, indicating that investors in the underlying stock expect significant movements in either direction. However, it’s important to note that implied volatility is just one factor traders consider when developing options trading strategies.Despite the high implied volatility, one should also consider Metropolitan Bank’s fundamentals. Presently, it ranks No. 4 on the Zacks (Selling) rankings for the Northeast banking industry, placing it in the bottom 3% of our Zacks Industry rankings. No analyst has upgraded their earnings estimates for the current quarter in the past 60 days, and one analyst has downgraded them. Consequently, our Zacks consensus estimate for the quarter has dropped from $2.07 per share to $1.73.Given analysts’ sentiments towards Metropolitan Bank right now, high implied volatility could signify a positive development for the company. Options traders may seek out high implied volatility options to sell at a premium, with the goal of capturing decay. Upon expiration, traders hope that the underlying stock won’t be as volatile as initially anticipated.
Post time: May-22-2023