International Business Machines Corporation, IBM,  risk points, scatter
International Business Machines Corporation Risk Points versus Technology
International Business Machines Corporation (NYSE:IBM)  Risk Points versus Technology (XLK)
Date Published: 2017-01-14
PREFACE
This is a scatter plot analysis of the critical risk points from the option market for International Business Machines Corporation (NYSE:IBM)         compared to its own past and the Technology ETF.  In order to examine the forward looking risk for International Business Machines Corporation (NYSE:IBM)  the next 30-days, we must look to the option market.
Now, before we dive into the analysis on IBM, we make one critical note since we're talking about options:
In the "Why This Matters" section at the end of this article on International Business Machines Corporation (NYSE:IBM) , 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 International Business Machines Corporation (NYSE:IBM) . We start by noting that IBM   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 International Business Machines Corporation.
We have highlighted the IV30® for XLK and for IBM in the table below.
SNAPSHOT SUMMARY
12.4%
Biotech (IBB) IV30     23.79%
International Business Machines Corporation (NYSE:IBM) IBM 52 Week Low IV30     13.53% IBM Current IV30     23.65% IBM 52 Week High IV30     33.72%
IBM Current HV30     13.87%
International Business Machines Corporation 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 International Business Machines Corporation.
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 International Business Machines Corporation.
The green point is the 52 week high in IV30® for International Business Machines Corporation.
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 International Business Machines Corporation is in between the indices we have      charted but is above the Technology ETF (XLK), which we use as a proxy for International Business Machines Corporation.
* For some context, we note that the annual range in IV30® for the Technology ETF is between [10.12%, 28.86%]      while International Business Machines Corporation has had a range of [13.53%, 33.72%].
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 International Business Machines Corporation (NYSE:IBM)  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.
While the option market risk rating is on the low side, we note that companies in this situation are still susceptible to sudden stock move risk,        it's simply the probability of that large stock move is depressed. Buyers of options and volatility may find these prices more attractive than at other times.
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