Risk Alert in Option Market: Chicago Bridge & Iron Company NV Implied Price Swing Hits An Extraordinary High – CML News

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Risk Alert: Before we dive into any analysis we simply note that Chicago Bridge & Iron Company N.V. (NYSE:CBI) risk is at an extremely elevated level. We’ll detail it below — but that’s the lede — the option market is flashing a neon sign that reads “risk is here” with an IV30 of 72.41% versus the IV30 of the S&P 500 at 7.86%.

One thing to note, which we cover in the article, is that while implied volatility may be high, the real question that needs to be answered for option traders is not if the implied vol is high, but rather if the realized volatility that is coming in the next 30 days will be higher or lower than the option market is pricing.

To skip ahead of this risk alert and see if buying or selling options has been a winner in Chicago Bridge & Iron Company N.V., you can go here: Getting serious about option trading.

PREFACE
This is a proprietary risk rating and risk alert system that looks forward for the next month — or really 30 days to be exact — and that includes weekends. The system is based on multiple interactions of data points, many of which come directly from the option market for Chicago Bridge & Iron Company N.V. (NYSE:CBI) . The creator of this model is Capital Market Laboratories (CMLviz.com).