Is the Options Market Predicting a Spike in Arcutis Biotherapeutics Stock?

Core Insights - Investors should closely monitor Arcutis Biotherapeutics, Inc. (ARQT) due to significant movements in the options market, particularly the Jan 16, 2026 $5 Put which has high implied volatility [1] Company Overview - Arcutis Biotherapeutics is currently rated as Zacks Rank 2 (Buy) in the Medical - Biomedical and Genetics industry, which is in the top 34% of the Zacks Industry Rank [3] - Over the past 60 days, the Zacks Consensus Estimate for the current quarter has shifted from a loss of 5 cents per share to earnings of 2 cents [3] Options Market Analysis - The high implied volatility in Arcutis Biotherapeutics shares indicates that options traders are anticipating a significant price movement, which could be due to an upcoming event that may lead to a rally or sell-off [2][4] - Options traders often seek out high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]