About Implied Volatility Surging For Apollo Investment (AINV) Stock Options

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Apollo Investment Corporation is one of the closed-end, externally managed, non-diversified management investment company. The NASDAQ: AINV at https://www.webull.com/quote/nasdaq-ainv company’s investment objective is to generate current income and capital appreciation. It is investing primarily in various forms of debt investments that are including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. This portfolio is including equity interests, such as common stock, preferred stock, warrants, or options. It invests in investments in the United States secured and unsecured loans, other debt securities, and equity, and may also invest a portion of the portfolio in other investment opportunities, including foreign securities and structured products.

Implied Volatility

  • Apollo Investment Management, L.P. is the investment advisor of the Company. Investors in Apollo Investment CorporationNASDAQ: AINV need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 18, 2020, $10.00 Put had some of the highest implied volatility of all equity options today.
  • Implied volatility is showing how much movement the market is expecting in the future. Options with high levels of implied volatility are suggesting that investors in the underlying stocks are expecting a big move in one direction or the other.
  • It is an event coming up soon that may be caused by a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when it is putting together an options trading strategy.

Analysts

  • Options traders are one of the pricing in a big move for Apollo Investment shares. Now, Apollo Investment is a Zacks Rank 3 (Hold) in the Financial like SBIC & Commercial Industry that is ranking in the Bottom 11% of our Zacks Industry Rank.
  • The Zacks Consensus Estimate for the current quarter has moved from 43 cents per share to 44 cents.
  • Given the way analysts feel about Apollo Investment right now, this huge implied volatility could mean there’s a trade development. Oftentimes, options traders are looking for options with high levels of implied volatility to sell premium.
  • This is a strategy many seasoned traders use because it captures decay. The hope for these traders is one of the underlying stock does not move as much as originally expected.

Trade Options

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Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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