In recent days, the options market has seen some movement in the Align Technology, Inc. (ALGN) Sep 09, 2024 $170 Call option. The implied volatility level of this option is one of the highest among equity options today, indicating that the market expects significant movement in the future.
While implied volatility is an important factor to consider in options trading strategies, it is just one aspect to keep in mind. Analysts have mixed opinions on Align Technology, which currently holds a Zacks Rank #3 (Hold) in the Medical-Dental Supplies industry. Over the past 60 days, some analysts have raised earnings estimates for the company’s current quarter while others have lowered them, resulting in a Zacks Consensus Estimate decrease from $2.39 per share to $2.33 per share.
Given the uncertainty surrounding Align Technology, options with high implied volatility may present trading opportunities for investors looking to capture potential profits or reduce risk. Some traders look to sell premium on high-volatility options and hope that the underlying stock does not move as much as expected by expiration date.
For those interested in trading options and looking for insights into Align Technology and other stocks, Zacks Executive VP Kevin Matras has a 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 learn more about Align Technology and other stock recommendations from Zacks Investment Research, visit their website today.
