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Is the Options Market Predicting a Spike in Open Text (OTEX) Stock?
OTEXOpenText(OTEX) ZACKS·2024-07-24 14:35

Core Insights - Investors in Open Text Corporation (OTEX) should monitor the stock closely due to significant movements in the options market, particularly the Aug 16, 2024 22.50Callwhichhasshownhighimpliedvolatility[1]CompanyAnalysis−OpenTextcurrentlyholdsaZacksRank3(Hold)intheComputer−Softwareindustry,whichispositionedintheBottom3222.50 Call which has shown high implied volatility [1] Company Analysis - Open Text currently holds a Zacks Rank 3 (Hold) in the Computer - Software industry, which is positioned in the Bottom 32% of the Zacks Industry Rank [3] - Over the past 30 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from 1.08 per share to $1.05 [3] Options Market Insights - The high implied volatility surrounding Open Text shares suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of options value as expiration approaches [4]