Traders in Bandwidth Inc. BAND have to pay shut consideration to the inventory based mostly on strikes within the choices market these days. That’s as a result of the Nov 21, 2025 $05.00 Put had among the highest implied volatility of all fairness choices at the moment.
What’s Implied Volatility?
Implied volatility reveals how a lot motion the market is anticipating sooner or later. Choices with excessive ranges of implied volatility recommend that buyers within the underlying shares expect an enormous transfer in a single route or the opposite. It may additionally imply there’s an occasion arising quickly which will trigger an enormous rally or an enormous unload. Nevertheless, implied volatility is just one piece of the puzzle when placing collectively an choices buying and selling technique.
What do the Analysts Assume?
Clearly, choices merchants are pricing in an enormous transfer for Bandwidth share, however what’s the elementary image for the corporate? At the moment, Bandwidth is a Zacks Rank #3 (Maintain) within the Communication – Infrastructure Business that ranks within the Prime 19% of our Zacks Business Rank. During the last 60 days, no analysts have elevated their estimates for the present quarter, whereas three have revised their estimates downwards. The web impact has taken our Zacks Consensus Estimate for the present quarter to stay flat at 38 cents per share in the identical time interval.
Given the way in which analysts really feel about Bandwidth proper now, this enormous implied volatility may imply there’s a commerce growing. Typically instances, choices merchants search for choices with excessive ranges of implied volatility to promote premium. This can be a technique many seasoned merchants use as a result of it captures decay. At expiration, the hope for these merchants is that the underlying inventory doesn’t transfer as a lot as initially anticipated.
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Bandwidth Inc. (BAND) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
