Genworth Financial (GNW, news, chart, volatility) implied volatility is elevated. The stock is one of the financial names that has taken a beating recently. Shares of the Richmond, Virginia-based insurance and investment company fell 46 percent last week. Today, GNW is down another $2.00 to $6.14 and implied volatiity is 270 percent, up from 190 on Friday. Judging by the losses in the shares and the spike in implied volatility, some investors seem to view the stock as one of the riskier names in the financial sector. Sentiment in the options market is mixed, however. 4,300 calls and 1,250 puts have traded on Genworth. The October 7.5 calls are the most actives, with 2,400 traded and 60 percent hitting bidside. At the same time, some modest buying interest is being seen in November, January and March 7.5 calls, as some bold investors seem to view today’s decline as an opportunity to enter bullish trades on GNW.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.