Are Options Traders Betting on a Big Move in Apache (APA) Stock?
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 Apache shares, but what is the fundamental picture for the company? Currently, Apache is a Zacks Rank #3 (Hold) in the Oil and Gas – Exploration and Production – United States industry that ranks in the Bottom 37% of our Zacks Industry Rank. The net effect has decreased our Zacks Consensus Estimate for the current quarter from earnings of 3 cents per share to a loss of 14 cents in that period.Given the way analysts feel about Apache right now, this huge implied volatility could mean there’s a trade developing. 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.