Are Options Traders Betting on a Big Move in Murphy Oil (MUR) Stock?
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Investors in Murphy Oil Corporation MUR need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $17.50 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 Murphy Oil share, but what is the fundamental picture for the company? Currently, Murphy Oil is a Zacks Rank #3 (Hold) in the Oil and Gas – Exploration and Production- United States industry that ranks in the Bottom 6% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their estimates for the current quarter, while six have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.00 per share to 76 cents per share in the same time period.Given the way analysts feel about Murphy Oil 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 >>Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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 Murphy Oil Corporation (MUR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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