Is the Options Market Predicting a Spike in RXO Stock?

Group 1 - RXO, Inc. has seen significant activity in the options market, particularly with the February 21, 2025 $10.00 Call option exhibiting high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - RXO currently holds a Zacks Rank 3 (Hold) in the Transportation - Services industry, which is in the bottom 25% of the Zacks Industry Rank, with recent earnings estimates being downgraded from 11 cents to 5 cents per share [3] Group 2 - The high implied volatility for RXO may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]