Are Options Traders Betting on a Big Move in Apollo Commercial Real Estate Finance (ARI) Stock?

Investors in Apollo Commercial Real Estate Finance, Inc. ARI need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $02.50 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.What do the Analysts Think?Clearly, options traders are pricing in a big move for Apollo Commercial Real Estate Finance shares, but what is the fundamental picture for the company? Currently, Apollo Commercial Real Estate Finance is a Zacks Rank #5 (Strong Sell) in the REIT and Equity Trust industry that ranks in the Bottom 39% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased their earnings estimates for the current quarter, while two have revised their estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 36 cents per share to 25 cents per share in that period.Given the way analysts feel about Apollo Commercial Real Estate Finance right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.Looking to Trade Options?Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.Click to see the trades now >>Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apollo Commercial Real Estate Finance (ARI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks