Wednesday, June 19, 2013

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.

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1 comment:

  1. takeover target....chinese want to buy all our meat packing and food supply industry