Workflow
Is the Options Market Predicting a Spike in BorgWarner (BWA) Stock?
BWABorgWarner(BWA) ZACKS·2025-03-05 19:55

Group 1 - Investors in BorgWarner Inc. should monitor the stock closely due to significant activity in the options market, particularly the March 21, 2025 20Call,whichhashighimpliedvolatility[1]Impliedvolatilityindicatesthemarketsexpectationoffuturemovement,suggestingthatinvestorsanticipateasignificantpricechangeoranupcomingeventthatcouldleadtoarallyorselloff[2]BorgWarnercurrentlyholdsaZacksRank3(Hold)intheAutomotiveOriginalEquipmentindustry,whichisinthebottom3920 Call, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future movement, suggesting that investors anticipate a significant price change or an upcoming event that could lead to a rally or sell-off [2] - BorgWarner currently holds a Zacks Rank 3 (Hold) in the Automotive - Original Equipment industry, which is in the bottom 39% of the Zacks Industry Rank, with no analysts increasing earnings estimates for the current quarter and two analysts lowering their estimates, resulting in a decrease of the Zacks Consensus Estimate from 1.12 to $0.97 per share [3] Group 2 - The high implied volatility for BorgWarner may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay, hoping the underlying stock does not move as much as expected by expiration [4]