Low IV Alert: Stocks that Could be Ready to Pop

Group 1 - Market volatility has decreased since the April correction, but potential spikes in volatility could occur due to various news items [1] - Stocks with low implied volatility percentiles are currently being highlighted as potential investment opportunities [1][2] - MSTR shows an implied volatility of 59.91%, with a twelve-month low of 43.83% and a high of 225.27%, indicating significant fluctuations in its implied volatility [2][3] Group 2 - The implied volatility rank (IV Rank) is a key metric for trading options, comparing current implied volatility to historical levels [2][3] - A low IV Rank suggests a stock is trading at a lower level of implied volatility compared to its past, while a high IV Rank indicates the opposite [3] - The Stock Screener can be utilized to identify stocks with low implied volatility percentiles, filtering for total options volume greater than 2,000 and market cap greater than 40 billion [5][6] Group 3 - A list of stocks with low implied volatility ranks includes Electronic Arts (EA), PDD Holdings (PDD), Vale (VALE), TC Energy Corp (TRP), Strategy Inc (MSTR), Berkshire Hathaway (BRK.B), Crowdstrike (CRWD), Nvidia (NVDA), and Costco (COST) [6] - When implied volatility rank is low, long volatility trades such as debit spreads, long straddles, and long strangles are generally recommended [8] - Comparing a stock's IV Rank to the overall market can provide insights into the potential advantages of buying volatility in specific stocks [8]