Investors in The Hanover Insurance Group, Inc. (THG – Free report) stocks need to be closely watched based on recent activity in the options market. That’s because the Feb 17, 2023 $155.00 Call had some of the highest leverage of all equity options today.
What is Implied Volatility?
Predictive models show the range of actions that the market expects in the future. Options with high levels of implied volatility indicate that investors are optimistic that the underlying stock is expecting a move. more to one side or the other. It can also be assumed that there is an impending crisis that could lead to a mass rally or mass sale. However, modeling traffic is only one piece of the puzzle when putting together a marketing strategy.
What do the researchers think?
Obviously, investors are buying options in a big move for Hanover Insurance shares, but what is the main picture for the company? Currently, Hanover Insurance’s Zacks Rank #4 (Buy) in Insurance – Property & Casualty ranks it in the bottom 43% of our Index. Zacks Industry Group. In the past 60 days, one analyst increased their earnings estimates for the current quarter, while none lowered their estimates. The impact brought our Zacks Consensus Estimate for the quarter from $2.20 per share to $2.19 over that period.
According to the feeling of the analysts about Hanover Insurance at the moment, this big announcement can mean that there is a trade development. Most of the time, options traders look for options with a high level of volatility to sell the currency. This is a strategy used by many professional traders because it catches the rot. After all, the expectation for these sellers is that the price below is not moving as expected.
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