Micro Cap Huge Stock Movements And Elevated Vol; Earnings Due Out
Ophir Gottlieb | Feb 14, 2013 01:39AM ET
Uni-Pixel, Inc. (Uni-Pixel) is a production-stage company delivering its Performance Engineered Film (PEF) to the display, touch screen and flexible electronics markets.
This is an interesting company -- it has revenue well below $1 million with just 18 employees, yet a market cap of ~$160 million. I UNXL using the real-time custom scan that 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 UNXL Charts Tab is included (below). The top portion is the stock price, the bottom is the vol (IV30™ - red).
On the stock side we can an incredible run up from ~$5 to now ~$17, with some abrupt stock volatility recently which has seen the stock trade as low as ~$7 and as high as ~$20 in just the last three months (ish).
Since the name has just started trading options, I have included a very small window of the IV30™ chart below for easier examination.
We can see the vol has always been above 100% -- not unusual for a micro cap. More recently though I note the climb in the implied and sustaining of those elevated levels. The company has earnings due out 2-2-13 and given the recent stock movement, it would surprise me to see IV30™ go above 150%.
Finally, let's look to the Options Tab (below).
Across the top we can see the monthly vols are priced to 114.34 for Feb and 121.45% for March. Again, as earnings approach, that March vol may increase well over 150%. Sometimes it's interesting to watch the micros -- this is certainly one of those times.
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Disclosure: This is trade analysis, not a recommendation.
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