This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Investing Ideas From 5 Companies Facing High Implied Volatility

The options market provides insight for investors looking for companies that may have recently experienced large price swings. In the options market, large price swings increase the value of the call or put. [More List Ideas:  6 S&P 500 Dividend Stocks Undervalued by the Graham Number]

More importantly, investors looking for buying and selling ideas could also anticipate the volatility, along with the price swings, to continue in the short-term. Some of the companies having the highest volatility are listed below: 


High Implied Volatility


1. Brocade Communications Systems, Inc. ( BRCD ): Supplies networking equipment comprising end-to-end Internet protocol based Ethernet and storage area networking solutions. Market cap at $2.55B, most recent closing price at $5.60.

The February $6 call options had an implied volatility of 43.6%. Volatility rose for Broadcade after OCZ Technology (OCZ) provided weak guidance. In early-January, Mellanox (MLNX) warned markets that its quarterly results would be weak. Brocade also named a new CEO. Lloyd Carney comes from Xsigo Systems, a company acquired by Oracle. Brocade also won an injunction against A10 Networks, a private company. Brocade won $112 M from A10 last summer.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

2. Thomson Reuters Corporation ( TRI): Provides intelligent information for businesses and professionals in the financial, legal, tax and accounting, healthcare, science, and media markets worldwide. Market cap at $25.58B, most recent closing price at $30.93.

A Libor overhaul threatens to remove Thomson Reuters as administrator of Libor. Shares have performed poorly since 2008, when Thomson and Reuters merged.

Tool provided by Kapitall. Click to access free research tools, share practice portfolios, and more. 

Screen shot 2013-02-04 at 12.49.18 PM


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs