Red Hat Inc (NYSE:RHT) Risk Points versus Technology (XLK)Date Published: 2016-12-21
This is a scatter plot analysis of the critical risk points from the option market for Red Hat Inc (NYSE:RHT) compared to its own past and the Technology ETF. In order to examine the forward looking risk for Red Hat Inc (NYSE:RHT) the next 30-days, we must look to the option market.
We also note that RHT is in the information technology sector which means along with some other industries we also compare the company to the closest match we could find, which was the Technology ETF (XLK) as a proxy for Red Hat Inc.
We have highlighted the IV30® for XLK and for RHT in the table below.
|CONTEXT: THE INDICES|
|S&P 500 (SPY)||IV30||9.85%|
|Nasdaq 100 (QQQ)||IV30||12.12%|
|Technology ETF (XLK)||IV30||11.92%|
|Red Hat Inc (NYSE:RHT)|
|RHT 52 Week Low||IV30||20.1%|
|RHT 52 Week High||IV30||45.32%|
|Red Hat Inc Implied Risk Scatter Plot|
|(a new risk chart, built for option traders)|
Scatter Plot Risk Legend
The blue point is the current 30-day implied volatility for Red Hat Inc.
The black point is the current 30-day implied volatility for the Technology ETF (XLK).
The red point is the 52 week low in IV30® for Red Hat Inc.
The green point is the 52 week high in IV30® for Red Hat Inc.
The various other scatter plot points in the middle give us risk context outside of the information technology sector.
The IV30® is the risk reflected by the option market in the stock price for the next 30 calendar days.
* We can see that the risk as reflected by the option market for the next 30-days for Red Hat Inc is above all the indices we have charted including the Technology ETF (XLK).
* For some context, we note that the annual range in IV30® for the Technology ETF is between [10.12%, 28.86%] while Red Hat Inc has had a range of [20.1%, 45.32%].
Get this same analysis on any ticker here:
A New Kind of Risk Point Chart
This is chart was developed for the trader. It allows us to easily see where the forward looking risk for Red Hat Inc (NYSE:RHT) lies relative to the last year, and the various major stock groupings and the Information Technology sector without using time series data, which can confuse the information.