Is the Options Market Predicting a Spike in Palomar Holdings Stock?

Company Overview - Palomar Holdings, Inc. (PLMR) is currently experiencing significant activity in the options market, particularly with the Jan 16, 2025 $85.00 Call option showing high implied volatility, indicating potential for a major price movement [1] - The company holds a Zacks Rank 2 (Buy) in the Insurance - Property and Casualty Industry, which is positioned in the top 35% of the Zacks Industry Rank [3] Analyst Insights - Over the past 60 days, three analysts have raised their earnings estimates for the current quarter, while three have lowered theirs, resulting in a net increase in the Zacks Consensus Estimate from $1.65 to $1.68 per share [3] - The high implied volatility suggests that options traders are anticipating a significant price movement for Palomar Holdings, which could indicate an upcoming event that may lead to a rally or sell-off [2][4] Trading Strategy - Options traders often seek out options with high implied volatility to sell premium, a strategy that can capture decay and potentially reduce risk if the underlying stock does not move as much as expected [4]