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Is the Options Market Predicting a Spike in AON Stock?
AONAON(AON) ZACKS·2025-03-11 18:30

Core Viewpoint - Investors in Aon plc (AON) should closely monitor stock movements due to significant implied volatility in the options market, particularly the April 17, 2024 440Putoption[1]Group1:ImpliedVolatility−Impliedvolatilityindicatesthemarket′sexpectationsforfuturepricemovements,withhighlevelssuggestingpotentialsignificantpricechangesorupcomingeventsthatcouldleadtoarallyorsell−off[2]−ThecurrenthighimpliedvolatilityforAONoptionsmaysignaladevelopingtradingopportunity,asoptionstradersoftenseektosellpremiumonsuchoptionstocapturedecay[4]Group2:AnalystSentiment−AoniscurrentlyratedasZacksRank3(Hold)withintheInsurance–Brokerageindustry,whichisinthetop35440 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for AON options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Aon is currently rated as Zacks Rank 3 (Hold) within the Insurance – Brokerage industry, which is in the top 35% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased earnings estimates for AON's current quarter, while six analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from 6.16 to $6.07 per share [3]