Fiverr (FVRR) is showing a rare compression in its stock price, despite high market volatility. Historically, this signals a big move ahead, creating a prime option buying opportunity.͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ Fiverr International Ltd. (FVRR) appeared on our list of compressed stocks this morning. FVRR is an online busines Fiverr International Ltd. (FVRR) appeared on our list of compressed stocks this morning. FVRR is an online business that lets freelance workers sell their creative services. FVRR even offers AI services. A recent Zacks Equity Research article dated Aug. 7th mentioned that the mean estimate of Wall Street analysts is a 34.8% upside move. That is a much larger move than we need for our favorite neutral option strategy to get into profitable territory. It is interesting that the stock is compressed when market volatility is currently high. On top of that, the options are relatively cheap after a post-earnings volatility crush. You can see in the chart below that when the stock has been this compressed in the past, it tends to make a big move in the next few weeks. Interestingly, each of those big moves was to the downside, which is contradictory to the expectations of the analysts. This [Volatility Term Structure]( for FVRR shows us the implied volatility of the at-the-money options for each expiration. To learn more about Volatility Term Structure, click [here](. Ever-higher volatility expectations as you go further out the calendar are normal shortly after earnings are released. The highest point in the term structure is below 58 and the lowest is above 48. Weâre going to select the September 20th expiration because it gives us time for the stock to move.Â
This MDM graph compares the modeled expectations of current options prices (the orange line) to the actual movement of FVRRâs stock price over the past two years. You can see that the actual behavior (the blue histogram) shows us that FVRR made big moves more frequently than modeled options prices currently expect. That is good news for our option buying strategies. This [Volatility Cone]( for FVRR shows us that volatility expectations (the yellow dots) for every term are below the two-year historical volatility average. To learn more about the Volatility Cone, click [here](. This confirms that options on FVRR are relatively inexpensive. FVRRâs stock prices are compressed. That is very interesting when market volatility is so high. When the stock has been this compressed in the past, the stock tends to make a bigger-than-expected move within the next few weeks. That is an option buying opportunity. To get the specific details and prices on todayâs trade ideas, be sure to read todayâs 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 --------------------------------------------------------------- See Related Articles on [TradewinsDaily.com]( [Fiverr International Ltd. (FVRR), Trending Stock Report]( [Quick, Important Alert On TNT]( [Check Out this Screaming Hot REIT]( [Russell 2000 Index (RUT), Trending Stock Report]( [Using Support And Resistance To Enter And Exit Profitably]( ---------------------------------------------------------------
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