Ophir Gottlieb | Sep 19, 2012 04:05AM ET
Blue Nile, Inc. (NILE) is a online retailer of diamonds and fine jewelry. The Company derives its revenues from its three websites: www.bluenile.com, www.bluenile.ca and www.bluenile.co.uk. Its Website serves the United States and 16 additional countries and territories globally.
This is a vol note with an interesting stock and vol trend developing. I found this stock using a custom scan searching for names where IV30™ is up at least 10% on the day. The scan details are below with a snapshot if you want to build it yourself in Livevol® Pro.
Custom Scan Details
Stock Price GTE 10
Average Option Volume GTE 1,200
Days After Earnings GTE 5 and LTE 60
IV30™ Percent Change GTE 10%
IV30™ GTE 10
The goal here is find stocks more than $10, with a greater than 10% rise in IV30™ (short-term implied) that is not due to an earnings date, with enough option liquidity to trade.
The NILE Charts Tab is included (below). The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20 - blue vs HV180 - pink).
Since 9-13-2012 the stock is down nearly $5 (~11%), including the drop today. I'm not a chartist, but that stock graph looks ominous. The 52 wk range in stock price is [$22.94, $50.00].
On the vol side, we can see how elevated the implied got into the last earnings release, and how even that 120%+ level wasn't high enough given the move. What's interesting is how low the implied has gotten after earnings. The vol crush was a must, but given he recent stock move up and then more recently, down, the level of IV30™ is noteworthy. Even after the pop today, IV30™ is in the 13th percentile (annual). The 52 wk range is [39.22%, 120.71%]. Hmmm....
Let's look to the Skew Tab snap (below) to examine the vols by strike by month.
Finally, let's look to the Options Tab.
Disclosure: This is trade analysis, not a recommendation.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.