Ophir Gottlieb | Jul 09, 2013 06:53AM ET
ONEOK, Inc., (OKE) is a diversified energy company. The Company’s segments include ONEOK Partners, Natural Gas Distribution and Energy Services. As of December 31, 2012, the Company was the sole general partner and owner of 43.4 % of ONEOK Partners, L.P. ONEOK Partners is engaged in the gathering, processing, storage and transportation of natural gas in the United States.
This is another elevated vol note on an energy company as the stock is plummeting. 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 one-year OKE 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).
Let’s turn to the one-year IV30™ chart in isolation, below.
The Skew Tab also reveals some interesting volatility phenomena.
(1) Both of the front months show an upside skew. In English, the option market reflects greater upside risk than downside risk in the next two option expiries. This would be considered “backwards” skew.
(2) Note the volatility difference between Jul and Aug to the upside. A substantial vol diff exists between the two months to the OTM calls while the ATM options are in fact priced higher in Aug than Jul. Interesting…
Finally, let's look to the Options Tab (below).
Disclosure: This is trade analysis, not a recommendation.
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