Options dealers typically price event-driven moves, like earnings, at about two standard deviations. Halve that implied …
Options dealers typically price event-driven moves, like earnings, at about two standard deviations. Halve that implied move, and you get a rough gauge of the stock’s daily swing. SK Hynix ($SK Hynix(SKHY.US)) is pricing a ~9.3% move, implying a typical daily range of roughly 4.5%.
Knowing a stock’s potential range and earnings behavior helps with sizing and hedging ahead of the print. Implied moves capture magnitude, not direction.
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