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Electronics for Imaging Inc Risk Points versus Technology




Electronics for Imaging Inc (NASDAQ:EFII) Risk Points versus Technology (XLK)

Date Published:


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

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



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In the "Why This Matters" section at the end of this article on Electronics for Imaging Inc (NASDAQ:EFII) , 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.

But that's at the end, now let's jump back into the risk point charting and number crunching for Electronics for Imaging Inc (NASDAQ:EFII) . We start by noting that EFII 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 Electronics for Imaging Inc.

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


SNAPSHOT SUMMARY
CONTEXT: THE INDICES
S&P 500 (SPY) IV30     11.15%
Nasdaq 100 (QQQ) IV30     12.44%
Technology ETF (XLK) IV30     12.46%
Biotech (IBB) IV30     18.5%


Electronics for Imaging Inc (NASDAQ:EFII)
EFII 52 Week Low IV30     22.1%
EFII Current IV30     31.66%
EFII 52 Week High IV30     42.86%

EFII Current HV30     13.11%

Electronics for Imaging 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 Electronics for Imaging 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 Electronics for Imaging Inc.
The green point is the 52 week high in IV30® for Electronics for Imaging 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 Electronics for Imaging 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 [9.36%, 21.75%] while Electronics for Imaging Inc has had a range of [22.1%, 42.86%].

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 Electronics for Imaging Inc (NASDAQ:EFII) 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.