Ophir Gottlieb | May 17, 2013 05:23AM ET
TiVo Inc. (TIVO) a developer and provider of software and technology that enables the search, navigation, and access of content across sources, including linear television, on-demand television, and broadband video.
I found this stock using a real-time custom scan. This one hunts for elevated vols. TIVO does have earnings due out in the next few days, so the elevated vol isn’t a surprise, but it’s the trend and the level to which it has elevated that caught my eye… and I believe it will catch your eye once you get a look. We are well into annual high territory for IV30™.
The news it turns out, is simple: There is another patent infringement lawsuit going to trial and potentially settling in the Jun expiration cycle. This time, it's TiVO vs Google (Mobile Mobility). The prior cases TiVo has fought have all gone in their favor (DISH, AT&T and Verizon) totaling around $1 billion in damages oin to TiVo (Source: Deadline New York -- http://www.deadline.com/2012/12/tivo-google-motorola-mobility-patent-lawsuit/).
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 TIVO 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).
But let’s look to today – the vol in particular. I have included the one-year vol chart below (IV30™ - red vs HV20™ - blue vs HV180™ - pink).
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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