Are Options Traders Betting on a Big Move in Edison International Stock?

Investors in Edison International EIX need to pay close attention to the stock based on moves in the options market lately. That is because the July 17, 2026 $32.50 Call 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 Edison International shares, but what is the fundamental picture for the company? Currently, Edison International is a Zacks Rank #3 (Hold) in the Utility - Electric Power industry that ranks in the Bottom 43% of our Zacks Industry Rank. Over the last 30 days, no analyst has increased the earnings estimates for the to-be-reported quarter, while two have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the to-be-reported quarter from $2.20 per share to $2.07 in that period.Given the way analysts feel about Edison International 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks