U.S. Markets closed

Options Traders Expect Huge Moves in Aurora (ACB) Stock

Zacks Equity Research

Investors in Aurora Cannabis Inc. ACB need to pay close attention to the stock based on moves in the options market lately. That is because the Mar 20, 2020 $4.00 Put 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 Aurora shares, but what is the fundamental picture for the company? Currently, Aurora is a Zacks Rank #3 (Hold) in the Medical – Products industry that ranks in the Bottom 46% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while two have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 3 cents per share to a loss of 4 cents in that period.

Given the way analysts feel about Aurora right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, 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 >>

Click to get this free report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

  • Buy Alibaba Stock on Coronavirus Fears
    Business
    InvestorPlace

    Buy Alibaba Stock on Coronavirus Fears

    Coronavirus fears are taking a toll on Chinese stocks this week. But there's a silver lining to the carnage. Most of them, like Alibaba (NYSE:BABA) stock, had share prices that were hotter than a freshly fired pistol.

  • One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’
    Business
    MarketWatch

    One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’

    Stanley Druckenmiller, one of Wall Street's most successful investors, acknowledges that the markets are riding high and that investors may be able to finally breathe freely in the short term after a number of shocks, but says investors should be wary of three events that could knock assets into a bear market. One of the reasons I'm pretty sanguine right now is I think we're close enough to the election, at least we can breathe for a few months,” he told Bloomberg Television during a recent interview. But there are a trio of situations that could upend that optimism — and perhaps permanently.

  • 7 ‘A’-Rated Dividend Stocks That Provide Inflation-Beating Income
    Business
    InvestorPlace

    7 ‘A’-Rated Dividend Stocks That Provide Inflation-Beating Income

    It means these stocks have decided to take some of their net income and deliver it back shareholders on a regular basis. Yes, the stocks rise and the companies grow, but some of that cash for expansion is returned to shareholders on a regular basis. Some industries are famous for their income — real estate investment trusts, utilities, master limited partnerships.

  • This basket of dividend growth stocks can help your portfolio stand out in 2020
    Business
    MarketWatch

    This basket of dividend growth stocks can help your portfolio stand out in 2020

    Analysts at Goldman Sachs are highlighting a “dividend growth basket” of stocks at a time when valuations for the U.S. stock market have shot up to their second-highest level since June 2002. In the firm's recent “U.S. Weekly Kickstart” report Jan. 3, the analysts, led by David Kostin, recommended investors be cautious and look for “growth at a reasonable price,” but also included a group of dividend stocks with low price-to-earnings valuations relative to the S&P 500 (SPX) that also appear likely to continue raising their dividend payouts more quickly than the broader market.

  • Business
    U.S.News & World Report

    7 Best Vanguard Funds to Buy and Hold

    It offers a five-year average return of 7.23% and an expense ratio of 0.14%. Year-to-date, VASGX has delivered a 23.13% return. VITSX is one of the best Vanguard mutual funds for buy-and-hold investors who want broad exposure to the stock market as a whole.

  • Adam Schiff's Closing Remarks at Impeachment Trial Disturbs Some GOP Senators
    Politics
    Meredith Videos

    Adam Schiff's Closing Remarks at Impeachment Trial Disturbs Some GOP Senators

    Senate Republicans said lead impeachment prosecutor Adam Schiff insulted them during the trial by repeating an anonymously sourced report that the White House had threatened to punish Republicans who voted against President Donald Trump.

  • Business
    Barrons.com

    A Giant Fund Sold Apple and Costco Stock. Here’s What It Bought.

    Dutch pension giant PGGM made some major moves in its U.S.-traded stock investments. In the fourth quarter, PGGM initiated a stake in (V) stock (ticker: V), and tripled its investment in (MSFT) stock (MSFT). PGGM disclosed the trades, among others, in a form it filed with the Securities and Exchange Commission.

  • It’s High Time to Hop Off The Nio Train
    Business
    InvestorPlace

    It’s High Time to Hop Off The Nio Train

    According to a Jan. 17 SEC filing, UK investment management firm Baillie Gifford has increased its stake in Nio (NYSE:NIO), the up-and-coming Chinese electric vehicle manufacturer. At this time last year, Baillie Gifford owned 11% of NIO. Already the company's largest shareholder, the fact that it's increased its stake by 19% in just one year suggests Baillie Gifford has a good feeling about Nio's future.

  • Roth IRA Contributions with No Job?
    Business
    Investopedia

    Roth IRA Contributions with No Job?

    The internal Revenue Service (IRS) gets a little grumpy if you contribute to a Roth individual retirement account (IRA) without what it calls earned income. You don't necessarily need a formal job to contribute to a Roth IRA. Although it's not true in all cases, if you're paying taxes on any type of income from working, there's a good chance that you can make Roth IRA contributions.

  • Boeing's 777X jetliner successfully completes maiden flight
    Business
    Reuters

    Boeing's 777X jetliner successfully completes maiden flight

    Boeing Co successfully staged the first flight of the world's largest twin-engined jetliner on Saturday in a respite from the crisis over its smallest model, the grounded 737 MAX. The 777X, a larger version of the 777 mini-jumbo, touched down at the historic Boeing Field outside Seattle at 2 pm (2200 GMT) after a debut which began almost four hours earlier at Boeing's revamped wide-body assembly lines north of the city. The decision to take advantage of a gap in clouds to start the months of testing needed before the jet can carry passengers came after two attempts had to be postponed due to high winds.

  • The Dow is about to face its stiffest test in years
    Business
    MarketWatch

    The Dow is about to face its stiffest test in years

    The Dow Jones Industrial Average increased more than 22% in 2019 and is already up 2.2% through three weeks of 2020, but it is about to face its biggest test of the young year, and potentially many years. Nearly half of the 30 Dow (DJIA) components are scheduled to report results from the holiday season in the coming week, which will be by far the busiest week of the earnings season. There are 14 Dow companies expected to report, the most companies from the blue-chip index to report in a single week since at least 2014, a group that includes two trillion-dollar market caps in Apple Inc.

  • 3 Top Dividend Stocks with Over 7% Dividend Yield
    Business
    TipRanks

    3 Top Dividend Stocks with Over 7% Dividend Yield

    These profit-sharing payments give investors a steady income stream – even when market gains are sluggish. As an added appeal, there is no upper limit to a dividend's yield. After three Fed rate cuts in 2019, Treasury bonds are down to the 1.5% to 1.75% range – while the average dividend yield among S&P-listed companies is just about 2%.

  • 6 Social Security Changes for 2020
    Business
    Investopedia

    6 Social Security Changes for 2020

    Every October the Social Security Administration (SSA) announces its annual changes to the Social Security program for the coming year. Here are the Social Security changes that were announced in October 2019 and took effect on Jan. 1, 2020, according to the SSA's annual fact sheet. For 2020, more than 64 million Social Security recipients are seeing a 1.6% cost-of-living adjustment (COLA) to their monthly benefits. The adjustment helps benefits keep pace with inflation and is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as calculated by the Bureau of Labor Statistics (BLS).

  • Business
    Barrons.com

    Mario Gabelli Says It’s Time to Invest in Stocks That Will Save the World. These Two Stocks Fit the Bill.

    The stock is at $29.70, with 60 million shares and a $1.8 billion market value. The Atlanta Braves finished with a 97-65 record last season, so they've done well on the field. Secondly, Major League Baseball is examining the minor-league ownership rules, which should increase the value of their A, AA, and AAA teams.

  • 4 Bank Stocks to Sell and 4 Cash-Generating Alternatives to Buy
    Business
    InvestorPlace

    4 Bank Stocks to Sell and 4 Cash-Generating Alternatives to Buy

    First I was with Merrill Lynch International Bank, then with the boutique Mark Twain Bank — now part of U.S. Bancorp (NYSE:USB) — and onto Investec. The key to banking is to gather deposits, seek out opportunities to make loans, cut costs and maximize fee income  — and make absolutely sure that you know how the bank will get paid interest and principal. There are specific metrics to measure how a bank is faring.

  • Why Pressure on Huawei Isn’t Going to Save Nokia Stock
    Business
    InvestorPlace

    Why Pressure on Huawei Isn’t Going to Save Nokia Stock

    At this point, Nokia (NYSE:NOK) is a 5G (fifth-generation) wireless play. And one of the potential drivers of Nokia's growth in 5G is political pressure on key rival Huawei. The combination of a growing market and a weakened competitor has been a key pillar of the bull case for Nokia stock.

  • AMD Stock Could Run 40% Higher Closer to $70 in 2020
    Business
    InvestorPlace

    AMD Stock Could Run 40% Higher Closer to $70 in 2020

    AMD Is Crushing Its Competition AMD could have another explosive year, especially as it gains market share from Intel. Invest in America's Most Trusted Brands With These 7 Stocks to Buy At the moment, Intel has yet to fully ease its processor shortages, which is causing notebook vendors to look to more of its competitions in 2020. Furthermore, AMD may also challenge NVDA dominance in 2020, as well with its “NVIDIA Killer.

  • Theranos Founder Elizabeth Holmes Phones In Her Defense 
    Business
    Bloomberg

    Theranos Founder Elizabeth Holmes Phones In Her Defense 

    Unable to pay her lawyers in an Arizona fraud lawsuit, former Theranos Inc. Chief Executive Officer Elizabeth Holmes is defending herself by phone. Bloomberg's Heather Smith has more on "Bloomberg Markets."

  • Toll Brothers gears up to sell 2,200 homes in the West Valley
    Business
    American City Business Journals

    Toll Brothers gears up to sell 2,200 homes in the West Valley

    The 780-acre community includes 13 model homes and three community pools. It also will include an 18-hole Jack Nicklaus-designed private golf facility, which is the first golf course to be built in the West Valley in nearly a decade. The golf course is expected to be completed by January 2021, with a 35,000-square-foot clubhouse to be completed soon after, said Ryan Stemsrud, general manager for Sterling Grove Golf Club.

  • Why Plug Power Stock Could Rise 50% This Year
    Business
    InvestorPlace

    Why Plug Power Stock Could Rise 50% This Year

    Shares of hydrogen fuel cell (HFC) maker Plug Power (NASDAQ:PLUG) were red hot in 2019. If management can deliver on those goals (or anything close to those goals, for that matter), then Plug Power's growth trajectory will remain robust for a lot longer, and PLUG stock will continue to rally in a big way.

  • Head of U.S.’ largest bank says central banks are fueling a sovereign debt bubble, negative-rates won’t ‘end well’
    Business
    MarketWatch

    Head of U.S.’ largest bank says central banks are fueling a sovereign debt bubble, negative-rates won’t ‘end well’

    Jamie Dimon doesn't have much positive to say about negative interest rates in Europe and Japan or public policy in the United States during the past decade. The JPMorgan Chase & Co. (JPM) Chairman and CEO blasted the policy of negative interest rates adopted in Europe and Japan during an interview with CNBC, while arguing that economic growth in the U.S. could have been nearly double its actual rate if the government policy had been better. Dimon took aim at fiscal and other economic policies in place at the U.S. federal level.

  • Why Shopify Is Set to Smash Quarterly Earnings Expectations
    Business
    InvestorPlace

    Why Shopify Is Set to Smash Quarterly Earnings Expectations

    In the quarter, the company posted strong cash flow and adjusted operating income of $10.5 million. Above all, for the full-year 2019, Shopify forecast adjusted operating income in the range between $27 million and $37 million. Outlook Shopify's business is positioned for considerably stronger growth in 2020.

  • How the stock market has performed during past viral outbreaks, as epidemic locks down 16 Chinese cities
    World
    MarketWatch

    How the stock market has performed during past viral outbreaks, as epidemic locks down 16 Chinese cities

    According to Dow Jones Market Data, the S&P 500 posted a gain of 14.59% after the first occurrence of SARS back in 2002-03, based on the end of month performance for the index in April, 2003. About 12 months after that point, the broad-market benchmark was up 20.76% (see attached table): SARS resulted in a total of about 8,100 people being sickened during the 2003 outbreak, with 774 people dying, according to data from WHO and the Centers for Disease Control and Prevention. Separately, the S&P 500 rose 11.66% in the roughly six months following reports of the 2006 Avian flu virus — a fast-moving pathogen also known as H5N1.

  • Key Catalysts Will Get Risky Aurora Stock Back On Track
    Business
    InvestorPlace

    Key Catalysts Will Get Risky Aurora Stock Back On Track

    Aurora Cannabis (NYSE:ACB) has pulled a nice rally during the past couple weeks. A year ago ACB was fetching a much more robust price of $10. As for Aurora, there are certainly some bigtime challenges for the company.

  • What you need to know about homeowner tax deductions
    Business
    Yahoo Finance

    What you need to know about homeowner tax deductions

    Fueled by low mortgage rates and a strong job market, demand is high and supply is low in many areas of the country. For those lucky enough to find a home where they want, at a price they want, the tax benefits are enticing: You can deduct mortgage points from your closing costs, take a deduction on your home mortgage interest, and deduct mortgage interest as well as state and local taxes (up to $10,000). It has made the benefits of these homeowner deductions less clear, especially for those who are higher earners and live in high-tax states.