Tesla Inc (NASDAQ:TSLA) Risk Hits An Elevated LevelDate Published: 2017-04-21
No Risk Alert Here: Before we dive into any analysis we simply note that Tesla Inc (NASDAQ:TSLA) risk is neither elevated nor depressed. We'll detail it below -- but that's the lede -- the option market is in a holding period with an IV30 of 42.51% verus the IV30 of the S&P 500 at 11.15%. You might say that the post it note for Tesla Inc would read, "holding pattern." The annual high for Tesla Inc IV30 is 56.25%.
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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 Tesla Inc (NASDAQ:TSLA) . 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 Tesla Inc 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 TSLA and the company's risk rating:
We also take a peek at the implied vol for the Consumer Discretionary ETF (XLY), our broad based proxy for TSLA.
|S&P 500 IV30||11.15%|
|Nasdaq 100 IV30||12.44%|
|TSLA HV 30||37.87%|
|TSLA Current IV30||42.51%|
|52 Week Low IV30||27.76%|
|52 Week High IV30||56.25%|
The implied price swing risk as reflected by the option market has hit an elevated level relative to the company's past. The option market reflects a 95% confidence interval stock price range of ($272.90, $331.60) within the next 30 calendar days.
TSLA 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. Tesla Inc shows an IV30 of 42.5%, which is an elevated level for the company relative to its past.
The option market for TSLA has shown an IV30 annual low of 27.8% and an annual high of 56.3%, meaning that TSLA is at the 52% 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 Tesla Inc (NASDAQ:TSLA) 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.
Tesla Inc Risk Rating
The TSLA risk rating is at 3.5, where the rating goes from one (the lowest risk) to five (the highest risk). The driving factors for the 3.5 rating are:
↪ The IV30 is above the annual average.
↪ The IV30 is above 40%.
↪ The HV30 is above the annual average.
↪ The IV30 is above the HV30.
↪ The stock has moved +23.5% over the last 3-months which does indicate some elevated risk.