IOC Options From Yahoo

[hirosan]

Investors InterOil Corporation IOC need to pay close attention to the stock based on moves in the options market lately. That is because the January 20th, 2017 $17.5 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 InterOil shares, but what is the fundamental picture for the company? Currently, InterOil is a Zacks Rank #3 (Hold) in the Oil and Gas - Integrated - Canadian industry that ranks in the Top 3% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased earnings estimate for the current quarter, while none have dropped estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 36 cents per share to a loss of 35 cents in that period.

Given the way analysts feel about InterOil right 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.

[Kaliboo]

Investors InterOil Corporation IOC need to pay close attention to the stock based on moves in the options market lately. That is because the January 20th, 2017 $17.5 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 InterOil shares, but what is the fundamental picture for the company? Currently, InterOil is a Zacks Rank #3 (Hold) in the Oil and Gas - Integrated - Canadian industry that ranks in the Top 3% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased earnings estimate for the current quarter, while none have dropped estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 36 cents per share to a loss of 35 cents in that period. Given the way analysts feel about InterOil right 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.

I saw notice of these too from Zacks.  The MIC should be public knowledge before that date.  So maybe some insiders are trading on information that will become public and will hurt the stock???

I can't imagine what that would be unless the buyout offer is terminated before then.  But only insiders would know that.

[katytrader]

Investors InterOil Corporation IOC need to pay close attention to the stock based on moves in the options market lately. That is because the January 20th, 2017 $17.5 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 InterOil shares, but what is the fundamental picture for the company? Currently, InterOil is a Zacks Rank #3 (Hold) in the Oil and Gas - Integrated - Canadian industry that ranks in the Top 3% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased earnings estimate for the current quarter, while none have dropped estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 36 cents per share to a loss of 35 cents in that period. Given the way analysts feel about InterOil right 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.

I saw notice of these too from Zacks.  The MIC should be public knowledge before that date.  So maybe some insiders are trading on information that will become public and will hurt the stock???

I can't imagine what that would be unless the buyout offer is terminated before then.  But only insiders would know that.

  Well, with a bid of zero and ask of one penny, this is not exactly a hot option.  The open interest is relatively large but so is the 25 strike open interest.  I'm going from memory here......I think a while back there were a lot of spread transactions, e.g., selling the 25 and buying the 17.5.   I don't know what criteria Zack's uses to highlight an option, but when it suggests looking at analysts' EPS guesses for IOC one probably should assume that it uses some numbers-grinding program which is not necessarily relevant for a particular stock.  fwiw