Ophir Gottlieb | Oct 17, 2013 03:29AM ET
Ubiquiti Networks Inc, (UBNT), is a communications technology company. It designs, manufactures and sells broadband wireless solutions worldwide. The company offers a portfolio of wireless networking products and solutions, including systems, high performance radios, antennas and management tools, designed for wireless networking and other applications in the unlicensed radio frequency (RF) spectrum.
This is a truly fascinating story that I just now picked up on (my bad). The stock has been rocketing and implied volatility has been rising with the price, but it seems to surround this very auspicious announcement which I picked up from theflyonthewall:
Ubiquiti Networks teases 'most important announcement of year'
Ubiquiti Networks plans a vendor presentation at the WISPAPALOOZA conference, scheduled for tomorrow night, where the company will make its "most important announcement of the year," according to the agenda for the event. The broadband conference is hosted by WISPA, the wireless Internet service provider association. -- Source: theflyonthewall via Yahoo! Finance
Really... That sounds like fun... The IV30™ has been ripping of late as has the stock, so let's look at a one-year Charts Tab, below. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue vs HV180™ - pink).
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UbiquitiNetworks plans a vendor presentation at the WISPAPALOOZA conference, scheduled for tomorrow night
So that would be Thursday night, and Oct expiry is Friday night. So there should be a day of trading after the announcement. Now, I know that UBNT has an earnings release on 11-7-2013 (AMC), but who cares?... If this is the "most important announcement of the year," earnings in Nov are completely trumped by the news coming out on Thursday night... right? Or not?...
Anyway, we gotta put this one on a watchlist and look at that vol diff between Oct and Nov. What an interesting volatility story that will play out its final act in two days.
Disclosure: This is trade analysis, not a recommendation.
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