Is the Options Market Predicting a Spike in BJ's Restaurants (BJRI) Stock?

Core Viewpoint - Investors in BJ's Restaurants, Inc. (BJRI) should closely monitor the stock due to significant implied volatility in the options market, particularly the Jul 19, 2024 $20 Put option, which indicates expectations of a substantial price movement [1]. Company Analysis - BJ's Restaurants is currently rated as Zacks Rank 3 (Hold) within the Retail - Restaurants industry, which is positioned in the bottom 35% of the Zacks Industry Rank [3]. - Over the past 30 days, no analysts have raised their earnings estimates for the current quarter, while five analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from 51 cents per share to 49 cents [3]. Options Market Insights - The high implied volatility surrounding BJ's Restaurants suggests that options traders anticipate a significant price movement, which could indicate an upcoming event that may lead to either a rally or a sell-off [2][4]. - Seasoned options traders often seek out options with high implied volatility 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 by expiration [4].