Today, there are two major companies that are set to report their earnings: AAR (AIR) and Red Cat Holdings (RCAT). Before these earnings are released, it’s important to understand the concept of options volatility and implied earnings moves.
Options volatility refers to the amount of uncertainty or risk about the size of changes in a security’s value. It is an important factor to consider when trading options, as it can impact the potential profitability of a trade. Implied earnings moves, on the other hand, are based on options prices and provide insights into how the stock might move immediately after the earnings announcement.
For investors looking to make informed decisions about their investments, it’s crucial to pay attention to options activity prior to earnings announcements. This can help in predicting how a stock might behave in response to the earnings report.
Today, TipRanks has provided the expected earnings move for both AAR and Red Cat Holdings. This information can help investors plan their investing strategies accordingly. Here is a breakdown of the expected earnings moves for each company:
– AAR (AIR): +/- 7.94%
– Red Cat Holdings (RCAT): +/- 35.78%
It’s important to note that options trading comes with known risks. It is highly recommended to conduct thorough research and understand the risks involved before engaging in options trading. By being well-informed and understanding options volatility and implied earnings moves, investors can make better decisions when it comes to their investments.
Remember, knowledge is power in the world of investing, and staying informed about options activity and expected earnings moves can help you navigate the market more effectively.