A-Mark Precious Metals (AMRK) appeared on our list of compressed stocks this morning. With the FOMC meeting in Jackson Hole and gold hitting an all-time high yesterday, seeing a precious metals stock that is compressed right now is quite a surprise. 

Since the pandemic, when AMRK has gotten this compressed it’s gone haywire over the next few weeks (see the chart below). There are plenty of potential catalysts that could spark a big move before the October 18th expiration. The value of precious metals is likely to affect AMRK’s stock price more than the upcoming earnings report. 

This Volatility Term Structure for AMRK shows us the implied volatility for the at-the-money options for each expiration. To learn more about Volatility Term Structure, click here. This graph tells us that options expiring October 18th are relatively less expensive than options expiring in September. By selecting the October expiration, we will get enough time for the stock to make a bigger-than-expected move like those that occurred when the stock was this compressed in the past.

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AMRK’s stock price is compressed. Since the pandemic, when this stock has been this compressed the stock has made huge moves over the next few weeks. This is an option buying opportunity. 

To get the specific details and prices on today’s trade ideas, be sure to read today’s ODDS Online Daily Option Trade Idea

To access Odds Online Daily and be able to see any stock you are tracking in this software, click here.

Thank you,

Don Fishback