Ophir Gottlieb | Feb 28, 2013 05:12AM ET
Life Technologies Corporation (LIFE) is a global life sciences company. It delivers a range of products and services, including systems, instruments, reagents, software, and custom services.
I found this stock using a real-time custom scan. This one hunts for elevated vols:
Custom Scan Details
Stock Price GTE $5
IV30™ GTE 30
IV30™ Percentile GTE 80
Average Option Volume GTE 1,200
The goal with this scan is to identify short-term implied vol (IV30™) that is elevated to its own annual history (at least in the 80th percentile). I'm also looking for a reasonable amount of liquidity in the options (thus the minimum average option volume), and I want a minimum vol level so I don't pick up any boring ETF’s (or whatever). The stock price requirement helps me identify names that have enough strike prices to trade or spread.
The one-year LIFE 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).
There was a gap up on 1-18-2013 from $54.97 to $60.79 when the firm released news that it was exploring a buyer – i.e. buyout speculation . The stock continued to rise off that spec move all the way to $65.84 (its annual high), and then… there was earnings. And quiet… And then there was 2-20-2013 (seven days ago) when the stock gapped down from$63.36 to $58.13 when rumors circulated that the buy-out interest had gone cold.
Let’s turn to the IV30™ one-year chart in isolation, below.
Let’s turn to the Skew Tab to examine the line-by-line and month-to-month vols.
Finally, let's look to the Options Tab (below).
Disclosure: This is trade analysis, not a recommendation.
Images provided by Livevol®
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