Is the Options Market Predicting a Spike in Carter's (CRI) Stock?

Group 1 - The stock of Carter's, Inc. (CRI) is experiencing significant attention due to high implied volatility in the options market, particularly for the Dec 20, 2024 $45.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Carter's stock price, potentially due to an upcoming event [2] - Currently, Carter's holds a Zacks Rank of 3 (Hold) in the Shoes and Retail Apparel industry, which is in the top 12% of the Zacks Industry Rank, but analysts have not increased earnings estimates for the current quarter, leading to a decrease in the Zacks Consensus Estimate from $1.90 to $1.72 per share [3] Group 2 - The high implied volatility surrounding Carter's stock may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to benefit from time decay [4] - The strategy of selling premium is commonly employed by seasoned traders, who hope that the underlying stock will not move as much as initially expected by expiration [4]