Leidos Holdings, Inc. (LDOS) Sees Rising Options Activity: What Investors Should Know
Investors in Leidos Holdings, Inc. (LDOS) should take note of significant activity in the options market. Recently, the February 21, 2025, $105.00 Call option displayed some of the highest implied volatility among all equity options.
Understanding Implied Volatility
Implied volatility indicates the expected price movement of a stock in the future. When options exhibit high implied volatility, it suggests that investors anticipate significant price changes, either upwards or downwards. Such conditions may signal an upcoming event capable of driving substantial market shifts. However, it is important to remember that implied volatility is just one factor in developing an options trading strategy.
Analysts’ Perspectives
In examining Leidos, analysts’ insights provide useful context. Presently, Leidos holds a Zacks Rank of #2 (Buy) within the Aerospace-Defense sector, which is positioned in the top 35% of the Zacks Industry Rank. Over the past 60 days, there has been a split in analyst estimates for the current quarter: one analyst has increased their estimate while another has decreased theirs. As a result, the Zacks Consensus Estimate for the current quarter has risen modestly from $2.16 to $2.18 per share.
Given the current sentiment from analysts, the high implied volatility might indicate potential trading opportunities. Options traders often seek options with high implied volatility to sell premium, a strategy that capitalizes on time decay. Their objective is for the underlying stock to remain relatively stable until the expiration of the option.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
