Implied Volatility Movers: 10/19
30-day implied volatility is often considered to be the hallmark of the options market. It allows traders to get a quick, relative snapshot of how big players are positioning in names.
So, let’s take a look at a few names hitting new 30-day IV 52-week highs and lows…
52-Week Lows
Carbonite (CARB) – Shares of this computer backup developer have been moving sharply lower over the past three months, losing over 37% of its value during the period. Despite shares spiking even lower today, IV30 is pushing to a fresh 52-week low, off 85.2% to 8.22%. HV10 is registering 35.15%, while HV30 is at 24.70%.
Yesterday, Carbonite announced that it would be acquiring private backup service Zmanda; financial terms were not disclosed. It seems that some options players might have been looking for the opposite, holding up implied volatility into this announcement.
Citigroup (C) – Shares of Citi have been moving solidly higher over the past three months, though appear to be topped out over the short-term. Despite a dark red candle developing on the chart, IV30 pushed to a 52-week low this morning of 28.44% before rallying. HV10 remains around 34%.
With the 20-day, 50-day, and 200-day moving averages all trading well below the current price, naked puts and 1x2 put spreads look attractive here.
52-Week Highs
Nektar Therapeutics (NKTR) – With shares of NKTR testing and failing (notably) at the $11.00 level, shorts have gained momentum and pushed the stock down 4.8% today. IV30 is popping to a 52-week high at 149.34%, up 16.1% on the session. HV10 and HV30 are registering well below, at 26.05% and 31.17%, respectively.
If you are interested in playing the name, doing so via the common looks like the best option (So to speak); you can then sell premium to offset and/or hedge out your stock position.
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