Options Market Indicates Heavy Volatility For Affirm Holdings Amid High Volume Trading
Portfolio Pulse from Lisa Levin
Affirm Holdings, Inc. (NASDAQ:AFRM) stock traded lower after Piper Sandler downgraded the stock from Neutral to Underweight. The options market indicates heavy volatility for Affirm in the coming weeks and months. Traders expect Affirm’s stock to not recover above the $15 level between now and August 18. Piper Sandler analyst Kevin J. Barker expects persistently higher rates to pressure operating margins as AFRM needs to hold more loans on the balance sheet.
July 07, 2023 | 12:39 pm
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NEGATIVE IMPACT
Affirm Holdings' stock is expected to face heavy volatility and may not recover above the $15 level by August 18. The downgrade by Piper Sandler and the expectation of higher rates pressuring operating margins could negatively impact the stock.
The downgrade by Piper Sandler from Neutral to Underweight indicates a negative outlook for the stock. Additionally, the options market is expecting heavy volatility for Affirm, which could lead to price fluctuations. Traders' expectation that the stock will not recover above the $15 level by August 18 further adds to the negative sentiment. Lastly, the analyst's expectation of higher rates pressuring operating margins could negatively impact the company's financial performance, thereby affecting the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100