GoPro Inc (NASDAQ:GPRO) Risk Points versus Consumer Discretionary (XLY)Date Published: 2017-04-21
This is a scatter plot analysis of the critical risk points from the option market for GoPro Inc (NASDAQ:GPRO) compared to its own past and the Consumer Discretionary ETF. In order to examine the forward looking risk for GoPro Inc (NASDAQ:GPRO) the next 30-days, we must look to the option market.
Now, before we dive into the analysis on GPRO, we make one critical note since we're talking about options:
Option trading isn't about luck -- this three minute video will change your trading life forever: Option Trading and Truth
In the "Why This Matters" section at the end of this article on GoPro Inc (NASDAQ:GPRO) , 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 GoPro Inc (NASDAQ:GPRO) . We start by noting that GPRO is in the consumer durables and apparel sector which means along with some other industries we also compare the company to the closest match we could find, which was the Consumer Discretionary ETF (XLY) as a proxy for GoPro Inc.
We have highlighted the IV30® for XLY and for GPRO in the table below.
|CONTEXT: THE INDICES|
|S&P 500 (SPY)||IV30||11.15%|
|Nasdaq 100 (QQQ)||IV30||12.44%|
|Consumer Discretionary ETF (XLY)||IV30||12.1%|
|GoPro Inc (NASDAQ:GPRO)|
|GPRO 52 Week Low||IV30||48.17%|
|GPRO 52 Week High||IV30||99.27%|
|GoPro 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 GoPro Inc.
The black point is the current 30-day implied volatility for the Consumer Discretionary ETF (XLY).
The red point is the 52 week low in IV30® for GoPro Inc.
The green point is the 52 week high in IV30® for GoPro Inc.
The various other scatter plot points in the middle give us risk context outside of the consumer durables and apparel 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 GoPro Inc is above all the indices we have charted including the Consumer Discretionary ETF (XLY).
* For some context, we note that the annual range in IV30® for the Consumer Discretionary ETF is between [8.91%, 22.6%] while GoPro Inc has had a range of [48.17%, 99.27%].
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 GoPro Inc (NASDAQ:GPRO) lies relative to the last year, and the various major stock groupings and the Consumer Durables and Apparel sector without using time series data, which can confuse the information.