Stock Volatility Risk Alert: Restoration Hardware Holdings Inc Realized Volatility Hits An Exceptional High – CML News

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Stock Risk Alert
Before we dive into any analysis we simply note that Restoration Hardware Holdings Inc (NYSE:RH) has seen its stock price whip around at an extreme high level. We’ll detail it below — but that’s the lede — the stock has been moving and the market’s reaction is like a yellow post it note on the face of the ticker that reads “risk alert” with an HV20 of 105.76% verus the HV20 of the S&P 500 at 8.56%.

Another bit to this risk alert, which we cover in the article, is that while the historical volatility may be an extreme high level (the stock has been whipping around), the real question that needs to be answered for option traders is not if the HV20 is high, but rather if the implied volatility that is priced for the next 30-days accuratley reflects what we’re about to see in the stock for the next month