Hillshire Brands (HSH) - Vol Breaches Highs; Risk Elevates... But Why?

HSH is trading $34.22, up 2.0% with IV30™ up 10.69%. The LIVEVOL® Pro Summary is below.



The Hillshire Brands Company (Hillshire Brands), formerly Sara Lee Corporation, is a meat-centric food solutions company. The Company’s portfolio of meat includes Hillshire Farm Deli Select, sausage products and Hillshire Farm Hams.

I found this stock using a real-time custom scan. This one hunts for vol gainers on the day. I've included the results of the scan below.

Custom Scan Details
Stock Price GTE $5
IV30™ GTE 30
IV30™ Percent Change GTE 10
Average Option Volume GTE 1,200
IV30™ Change GTE 7

Let's look to the Charts Tab (one-year) below. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue vs HV180™ - pink).



On the stock side we can see a rather impressive and sustained up trend for ~10 months, then a bit of a dip off of that peak in May. But, this is really a vol story, so let's look at the one-year IV30™ chart in isolation.



What I note is the incredibly abrupt rise in the implied after the earnings vol crush.  The vol is up more than 50% from that dip after the last earnings release (blue "E" icon) into new annual high territory. The thing is, I don't know why...

Finally, let's turn to the Options tab, below.



Across the top we can see that Jun vol is priced to 40.63% (which is just two and a half days of option value), Jul is priced to 35.19% and Oct is priced to 32.89%.  There should be an earnings release in between July and Oct expiries.  Ultimately, this is an odd one -- vol rising abruptly, but not b/c of an earnings event.  Hmm...

This is trade analysis, not a recommendation.

Follow @OphirGottlieb

Tweet


Legal Stuff:
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.

The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. I am not engaged in rendering any legal or professional services by placing these general informational materials on this website.

I specifically disclaim any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if I have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.

I make no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that I endorse, sponsor, promote or am affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.