Control4 Corporation (NASDAQ:CTRL) Risk Hits An Unsually High LevelDate Published: 2017-04-21
Risk Alert: Before we dive into any analysis we simply note that Control4 Corporation (NASDAQ:CTRL) risk is elevated. We'll detail it below -- but that's the lede -- the option market is starting to flash those neon lights that signal "risk is rising" with an IV30 of 69.27% verus the IV30 of the S&P 500 at 11.15%. The annual high for Control4 Corporation IV30 is 101.44%.
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This is a proprietary risk rating and risk alert system that looks forward for the next month -- or really 30 days to be exact -- and that includes weekends. The system is based on multiple interactions of data points, many of which come directly from the option market for Control4 Corporation (NASDAQ:CTRL) . The creator of this model is Capital Market Laboratories (CMLviz.com).
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In the "Why This Matters" section at the end of this article on Control4 Corporation 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 and we'll talk about how superior returns are earned.
But first, let's turn back to CTRL and the company's risk rating:
We also take a peek at the implied vol for the Technology ETF (XLK), our broad based proxy for CTRL.
|S&P 500 IV30||11.15%|
|Nasdaq 100 IV30||12.44%|
|CTRL HV 30||28.65%|
|CTRL Current IV30||69.27%|
|52 Week Low IV30||35.65%|
|52 Week High IV30||101.44%|
The implied price swing risk as reflected by the option market has hit an unsually high level relative to the company's past. The option market reflects a 95% confidence interval stock price range of ($13.90, $19.10) within the next 30 calendar days.
CTRL OPTION MARKET IMPLIED PRICE SWING RISK
The IV30® is the implied price swing risk reflected by the option market in the stock price for the next 30 calendar days -- it's forward looking. Control4 Corporation shows an IV30 of 69.3%, which is an unsually high level for the company relative to its past.
The option market for CTRL has shown an IV30 annual low of 35.7% and an annual high of 101.4%, meaning that CTRL is at the 51% percentile right now. Here's a table of the data before we dig into the implied price swing risk rating further.
The implied stock swing risk from the option market reflects a wider range in the next 30 calendar days for Control4 Corporation (NASDAQ:CTRL) than it has on on average.
We have a situation now where not only is the IV30 elevated relative to the past, but the option market reflects the likelihood of yet more stock movement in the next 30-days than it has in the last 30-days. Let's turn to a chart to see what's going on.
Control4 Corporation Risk Rating
The CTRL risk rating is at 4, where the rating goes from one (the lowest risk) to five (the highest risk). The driving factors for the 4 rating are:
↪ The IV30 is above the annual average.
↪ The IV30 is above 60%.
↪ The HV30 is below the 20th percentile.
↪ The HV30 is below 30%.
↪ The IV30 is above the HV30.
↪ The stock has moved +45.0% over the last 3-months which does indicate some elevated risk.