Cameron Int'l (CAM) - Elevated Vol

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Cameron Int'l (CAM) - Elevated Vol

At the time of this post CAM was trading $45.26, up 1.6% with IV30 down 1.6%. The LIVEVOL Pro Summary is below.



Cameron International Corporation (Cameron) provides flow equipment products, systems and services to global oil, gas and process industries.

I found this stock using a real-time custom scan. This one hunts for high vols. I wrote about this stock for TheStreet.com (OptionsProfits) so no specific trade analysis.

Custom Scan Details

• Stock Price GTE $7 and LTE $70
• IV30 - HV20 GTE 10
• HV180 - IV30 LTE -8
• Average Option Volume GTE 1,200
• Industry isNot Bio-tech
• Days After Earnings GTE 10 and LTE 60

The goal with this scan is to identify short-term implied vol (IV30) that is elevated both to the recent stock movement (HV20) and the long term trend in stock movement (HV180). I'm also looking for a reasonable amount of liquidity in the options (thus the minimum average option volume), want to avoid bio-techs (and their crazy vol) and make sure I'm not selling elevated IV30 simply because earnings are approaching.

The CAM Charts Tab is included (below). The top portion is the stock price, the bottom is the vol (IV30 - red vs HV20 - blue vs HV180 - pink).

We can see:

• IV30: 38.92
• HV20: 26.89
• HV180: 30.71

So, IV30 is elevated relative to the short-term and long-term realized movement of the stock. The price has been headed straight down in the last four months (ish) ñ this was actually a $62 stock not too long ago.

Letís turn to the Skew Tab and look at line-by-line vols.



The skew is pretty normal looking ñ downward sloping, but there arenít any specific strikes that stand out.

Let's look to the Options Tab (below) for completeness.

This is trade analysis, not a recommendation.


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