news.cmlviz.com
menu
share

Amazon.com Inc Risk Points versus Technology




Amazon.com Inc (NASDAQ:AMZN) Risk Points versus Technology (XLK)

Date Published:


PREFACE
This is a scatter plot analysis of the critical risk points from the option market for Amazon.com Inc (NASDAQ:AMZN) compared to its own past and the Technology ETF. In order to examine the forward looking risk for Amazon.com Inc (NASDAQ:AMZN) the next 30-days, we must look to the option market.

Now, before we dive into the analysis on AMZN, we make one critical note since we're talking about options:

In the "Why This Matters" section at the end of this article on Amazon.com Inc (NASDAQ:AMZN) , we're going to take a step back and show in great specificity that there is actually a lot less "luck" in successful option trading than many people know. The whole concept of an "option trading expert" is vastly over complicated in order to dissuade non-professional traders from gaining the knowledge that the pros have.

But that's at the end, now let's jump back into the risk point charting and number crunching for Amazon.com Inc (NASDAQ:AMZN) . We start by noting that AMZN is in the information technology sector which means along with some other industries we also compare the company to the closest match we could find, which was the Technology ETF (XLK) as a proxy for Amazon.com Inc.

We have highlighted the IV30® for XLK and for AMZN in the table below.


SNAPSHOT SUMMARY
CONTEXT: THE INDICES
S&P 500 (SPY) IV30     10.11%
Nasdaq 100 (QQQ) IV30     13.89%
Technology ETF (XLK) IV30     14.09%
Biotech (IBB) IV30     24.91%


Amazon.com Inc (NASDAQ:AMZN)
AMZN 52 Week Low IV30     15.41%
AMZN Current IV30     32.59%
AMZN 52 Week High IV30     52.67%

AMZN Current HV30     18.28%

Amazon.com Inc Implied Risk Scatter Plot
(a new risk chart, built for option traders)



Scatter Plot Risk Legend
The blue point is the current 30-day implied volatility for Amazon.com Inc.
The black point is the current 30-day implied volatility for the Technology ETF (XLK).
The red point is the 52 week low in IV30® for Amazon.com Inc.
The green point is the 52 week high in IV30® for Amazon.com Inc.

The various other scatter plot points in the middle give us risk context outside of the information technology sector.

The IV30® is the risk reflected by the option market in the stock price for the next 30 calendar days.

* We can see that the risk as reflected by the option market for the next 30-days for Amazon.com Inc is above all the indices we have charted including the Technology ETF (XLK).

* For some context, we note that the annual range in IV30® for the Technology ETF is between [10.12%, 28.86%] while Amazon.com Inc has had a range of [15.41%, 52.67%].

Get this same analysis on any ticker here:


A New Kind of Risk Point Chart
This is chart was developed for the trader. It allows us to easily see where the forward looking risk for Amazon.com Inc (NASDAQ:AMZN) lies relative to the last year, and the various major stock groupings and the Information Technology sector without using time series data, which can confuse the information.