Stock Alert with Lower-Than-Average Indicators: Potential Candidates Primed for Significant Upsurge
Let's Get Low Volatility Stocks on Our Radar!
Implied volatility percentile, or IV rank, offers an interesting perspective when it comes to trading options. This badass metric tells you where a stock's current implied volatility stands in relation to its historical volatility range, making it easier to spot potential golden opportunities!
Want to Score Some Low Volatility Plays? Here's How:
- Grab a Stock Screener
- Dig around for a stock screener that offers IV filters. Choose from platforms like Barchart, AlphaQuery, or other platform sharks.
- Set Some Badass Filters
- Big Boy Market Cap: Set a minimum market cap of $40B if you're feeling brave.
- Options Game: Filter for stocks with high options activity, eyes on a total options volume over 5,000.
- IV Rank/Percentile: Lower that bad boy to less than 30% to dig up stocks with low IV.
- Screen It Out
- Run the screener to unveil the hidden gems trading with subdued options pricing. No worries about dry spells—these guys could get super volatile any minute now!
- Get Your Stats On
- Run a quick assessment of the fundamentals, technicals, and recent news for each stock to find any potential hidden weapons.
- Keep an eye on upcoming earnings dates, as stocks can make some seriously hectic moves following those announcements.
Filter Settings Table
| Filter | Example Setting ||-----------------|----------------|| Market Cap | > $40 billion || Total Options Volume| > 5,000 || IV Rank/Percentile| < 30% |
Low IV Can Mean Big Gains
Low IV can be an indication that a stock's options are being undervalued, potentially setting the stage for a burst of volatility. So, don the leather jacket, get your eyes on these stocks, and wait for that sweet, sweet volatility to pounce!
Please remember that options trading can be wildly risky, and your investments could vanish in the blink of an eye. This article should be used for educational purposes only, and always consult your financial advisor or the local vigilante before making any investment decisions. And hey, the guy writing this definitely doesn't own any of these bad boys himself!
On the publish date, Gavin McMaster didn't have any potatoes in these stocks mentioned in this article. This article is just for schooling purposes. For more info, check out our website Disclosure Policy here.
- In the realm of finance and personal-finance, understanding Implied Volatility Percentile (IV rank) can provide a unique perspective when trading options, especially low volatility stocks.
- To find low volatility stocks, using a stock screener that offers Implied Volatility filters, such as Barchart or AlphaQuery, is recommended.
- After selecting a stock screener, setting filters like a minimum market cap of $40B, high options activity with total options volume over 5,000, and IV Rank/Percentile less than 30%, can help uncover these low volatility stocks.
- Running the screener can expose these low IV stocks, which might be trading with subdued options pricing, though they could become volatile at any moment.
- By analyzing the fundamentals, technicals, and recent news for each stock, potential hidden weapons that could lead to significant gains can be identified.
