Sykes Enterprises, Xilinx & AeroVironment- 3 Likely Market Movers based on Option Implied Volatility

Discussion in 'Stocks' started by Raltin, Jun 26, 2019.

  1. Raltin

    Raltin

    Big changes in implied volatilities (IV) are a harbinger of big moves in the underlying stock. For example, if there is a big increase in the VIX (the fear gauge), investors expect a big move in the S&P 500. Raltin has created synthetic VIX like trackers for every stock & ETF to check for big changes in implied volatility. Based on that analysis, here are the stocks that have a big change in IV and are likely to be big movers in the coming weeks.



    Sykes Enterprises, Incorporated - SYKE


    Sykes Enterprises (SYKE) is a multinational corporation headquartered in Tampa, Florida. The company is engaged in providing business process outsourcing services, IT consulting and IT-enabled services. The implied volatility (IV) of the company for 30 day ATM has shot up from 28% to 53%, which is its yearly high. The ATM straddle premium is 11.69% almost near its 52 week high of 11.79%. The put call ratio (based on open interest) is 6.72. The estimated interim results of the company is expected on 7 August 2019.
    [​IMG]

    https://www.raltin.com/b/june-26-2019-market-mover-predictions-sykes-enterprises-cm443


    Xilinx, Inc. - XLNX


    Xilinx (XLNX) is a semiconductor technology company, primarily engaged in supplying programmable logic devices. It is known for inventing the field-programmable gate array (FPGA). The company’s stock has gained 9.62% in the past month. In that same time, the computer and technology sector gained 2.43%, while the S&P 500 gained 3.07%. The company is expected to report EPS of $0.94, up 27.03% from the prior-year quarter. XLNX is projected to release Q1 2020 earnings on 24 July 2019.


    The below chart from Raltin’s Options analytics indicates that the IV for the 30 Day At the Money (ATM) call is at 45% and near the 52 week high of 50%. The ATM straddle premium of 10.6% is also close to a yearly high of 11.23%. The ATM straddle premium implies that the underlying stock has to move 10.6% before it becomes profitable for an ATM straddle buyer. The put call ratio (based on open interest) is at 2.36.

    [​IMG]

    https://www.raltin.com/b/june-26-2019-market-mover-predictions-xilinx-cm444


    AeroVironment, Inc. - AVAV


    AeroVironment (AVAV) is involved in energy systems, electric vehicle systems, and unmanned aerial vehicles. The company is a global leader in unmanned aircraft systems (UAS) for both defense and commercial applications. AeroVironment has recently acquired Pulse Aerospace, LLC, a developer and supplier of small VTOL UAS, for $25.7 million in cash. It financed the transaction entirely from available cash on hand. The company released its FY 2019 earnings on 25 June 2019.


    The IV for the 30 day ATM has shot up from 42% to 69% take the straddle break even point to 14.4% before an ATM straddle premium seller can make a profit. The Put call ratio (based on Open Interest) has also shot to 21.2.
    [​IMG]

    https://www.raltin.com/b/june-26-2019-market-mover-predictions-aerovironment-cm445
     
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