Investors in MGIC Investment Corporation (MTG) need to pay attention to the options market.
That is because the Mar 16 $5.00 Put for MGIC Investment has had some of the highest implied volatility of all equity #options.
Clearly, options traders are pricing in a big move for MGIC Investment shares. But what is the fundamental picture for the company? Currently, MTG has a Zacks Rank #1 (Strong Buy). Over the past 60 days, one analyst has increased the #earnings estimates. Meanwhile no analysts have lowered their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 27 cents per share to 28 cents in that period.
Given the way analysts feel about MTG right now, this huge implied volatility could mean there’s a trade developing.