Stock Volatility Risk Alert: Inovalon Holdings Inc Stock Volatility Hits A Notable High – CML News

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Stock Risk Alert
Before we cover the full analysis we make a quick alert here that Inovalon Holdings Inc (NASDAQ:INOV) has seen its stock price whip around at an unsually high level. We’ll go through the details 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 “this is not equilibrium” with an HV20 of 33.41% verus the HV20 of the S&P 500 at 6.48%.

Another bit to this risk alert, which we cover in the article, is that while the historical volatility may be an unsually 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

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