Recently, Align Technology, Inc. (ALGN) has been in the spotlight among investors due to its high implied volatility levels in the options market. Specifically, the Sep 09, 2024 $170 Call option had one of the highest implied volatility levels among equity options today. Implied volatility measures how much movement the market expects in the future, with higher levels suggesting a larger potential for a big move in either direction.
Despite this high implied volatility level, analysts are still mixed on their opinions about Align Technology. Currently ranked as a Zacks Rank #3 (Hold) in the Medical-Dental Supplies industry, some analysts have raised earnings estimates for the company’s current quarter while others have lowered them. This has resulted in a decrease of the Zacks Consensus Estimate from $2.39 per share to $2.33 per share over the past 60 days.
Given this uncertainty surrounding Align Technology, options with high implied volatility present trading opportunities for some investors. Some traders look to sell premium on these options and capture decay, hoping that the underlying stock does not move as much as expected by expiration time.
If you’re interested in trading options and want to learn more about Align Technology and other companies, consider following Zacks Executive VP Kevin Matras’ simple yet effective approach that has resulted in double and triple-digit winners for his clients. By following his recommendations, investors can potentially reduce risk while maximizing profit potential. To access his latest stock recommendations and more information about Align Technology, visit their website today.
