iBankCoin
Joined Jan 1, 1970
204 Blog Posts

Volatility Du Jour, FSLR

fslrvol.gifSometimes charts miss something, and this volatility chart in FSLR is one of those times.

The standard volatility measure is a 30 day normalized reading. Since there are no options with exactly 30 days to go right now, the system blends the Aprils and Mays.

But May is an earnings month, and it carries a mid 80’s volatility. Which sounds nice, and looks fine on the chart. But FSLR is a stock that can soar 50 points on earnings, so it’s actually not that high.

And then there’s April. Yes, there is only a week and a day left, or just a week if there’s a surprise Good Friday next week. But Aprils are only trading at a mid 50’s volatility. That’s about as low as you ever see anything in FSLR, whatever the time frame, and tantamount to an expectation that the “market” anticipates that one of the last leaders left standing to do virtually nothing on Expiration week.

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4 comments

  1. ytfy

    good for a straddle?

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  2. Adam

    I think volatility is a little cheap, stock has sat for like 2 days and it caves.

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  3. DPeezy

    Good call…don’t see FSLR options on the cheap(er) very often.

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  4. Adam

    yeah, this is unusual. Kind of stuck at $270 now, but we’ll see.

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