The company called Apollo Commercial Finance has a thing called stock options that people can buy or sell. Stock options are like bets on how much the company's value will change in the future. Sometimes, when many people think the value might change a lot, they want to pay more money to be able to buy or sell those stock options. This is what is happening now with Apollo Commercial Finance, and it means some traders might be planning to make money from this situation. Read from source...
- The article does not provide any evidence or data to support the claim that implied volatility is surging for Apollo Commercial Finance stock options. It only mentions some opinions and speculations from analysts and traders, which are not reliable sources of information.
- The article uses vague and ambiguous terms like "huge", "developing", "oftentimes", and "many" without defining them or providing any context or examples to illustrate their meaning and relevance. This makes the article confusing and misleading for readers who want to understand the current situation and trends of Apollo Commercial Finance stock options.
- The article focuses too much on the implied volatility aspect, while ignoring other important factors that affect the stock price and performance, such as earnings, revenue, dividend, valuation, growth, sector, industry, market conditions, etc. By doing so, the article creates an impression that implied volatility is the only or the most significant driver of Apollo Commercial Finance stock options, which may not be true or accurate.
- The article does not provide any personal experience or expertise in trading or investing in stock options, nor does it disclose any potential conflicts of interest or bias that may influence its views and opinions on Apollo Commercial Finance stock options. This makes the article less credible and trustworthy for readers who want to learn from someone who has a proven track record or knowledge in this field.
- The article ends with a promotional link to Zacks.com, which is a competitor of Benzinga, the original source of the article. This suggests that the article may be part of a strategic marketing campaign to attract more traffic and revenue from other websites, rather than providing genuine and useful information to readers who are interested in Apollo Commercial Finance stock options.
Implied Volatility Surging for Apollo Commercial Finance Stock Options - Apollo Comml Real Est (NARI) - Benzinga
Possible investments based on the information given in the article are:
- Sell ARI put options with a strike price around $20 or higher, and expiring within the next 30 to 60 days. This would allow you to collect premium from option buyers who expect high volatility in the stock price, but also expose you to the risk of owning the stock if it drops below the strike price. You can adjust your position by buying or selling more contracts, or by rolling over to a later expiration date.
- Buy ARI call options with a strike price around $20 or lower, and expiring within the next 30 to 60 days. This would give you the right to purchase the stock at a discounted price in case of a decline, or at a profitable price in case of an increase. You can also benefit from the increased implied volatility by selling call options with the same or higher strike price and expiration date, creating a credit spread that pays you cash upfront.
- Buy ARI shares outright if you believe they are undervalued and have strong growth potential. This would involve paying the current market price of around $20 per share, and holding them for a longer period of time, possibly until you reach your target price or exit point. You can also use a stop-loss order to limit your losses in case of a sudden drop in the stock price.
Risks associated with these investments are:
- The implied volatility may decrease before your options expire, reducing the value of your premium and potentially resulting in a loss if you have to sell your contracts at a lower price than you bought them for.
- The stock price may move against your expectations, causing you to lose money on your put options or pay more than the strike price on your call options.
- You may miss out on further gains if the stock continues to rise and your call options expire worthless.