Wright Medical Group N.V. (NASDAQ:WMGI) Risk Points versus Health Care (XLV)
This is a scatter plot analysis of the critical risk points from the option market for Wright Medical Group N.V. (NASDAQ:WMGI)
compared to its own past and the Health Care ETF. In order to examine the forward looking risk for Wright Medical Group N.V. (NASDAQ:WMGI) the next 30-days, we must look to the option market.
Now, before we dive into the analysis on WMGI, we make one critical note since we’re talking about options:
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In the “Why This Matters” section at the end of this article on Wright Medical Group N.V. (NASDAQ:WMGI) , we’re going to take a step back and show in great specificity
that there is actually a lot less “luck” in successful option trading than many people know.
But that’s at the end, now let’s jump back into the risk point charting and number crunching for Wright Medical Group N.V. (NASDAQ:WMGI) . We start by noting that WMGI is in the healthcare equipment and services sector which means along with some other industries we also compare the company to the closest match we could find, which was
the Health Care ETF (XLV) as a proxy for Wright Medical Group N.V..
We have highlighted the IV30® for XLV and for WMGI in the table below.
|CONTEXT: THE INDICES|
|S&P 500 (SPY)||IV30||10.71%|
|Nasdaq 100 (QQQ)||IV30||13.98%|
|Health Care ETF (XLV)||IV30||11.64%|
|Wright Medical Group N.V. (NASDAQ:WMGI)|
|WMGI 52 Week Low||IV30||26.25%|
|WMGI 52 Week High||IV30||50.09%|
Wright Medical Group N.V. Implied Risk Scatter Plot
(a new risk chart, built for option traders)
Scatter Plot Risk Legend
The blue point is the current 30-day implied volatility for Wright Medical Group N.V..
The black point is the current 30-day implied volatility for the Health Care ETF (XLV).
The red point is the 52 week low in IV30® for Wright Medical Group N.V..
The green point is the 52 week high in IV30® for Wright Medical Group N.V..
The various other scatter plot points in the middle give us risk context outside of the healthcare equipment and services sector.
The IV30® is the risk reflected by the option market in the stock price for the next 30 calendar days.
* We can see that the risk as reflected by the option market for the next 30-days for Wright Medical Group N.V. is above all the indices we have
charted including the Health Care ETF (XLV).
* We can further see that the current IV30 for Wright Medical Group N.V. of 28.71% is closer to the annual low of 26.25% than the annual high of 50.09%.
Simply stated, this means that the option market is pricing less risk than the average over the past year.
* For some context, we note that the annual range in IV30® for the Health Care ETF is between [9.2%, 23.51%]
while Wright Medical Group N.V. has had a range of [26.25%, 50.09%].
Get this same analysis on any ticker here:
A New Kind of Risk Point Chart
This is chart was developed for the trader. It allows us to easily see where the forward looking risk for Wright Medical Group N.V. (NASDAQ:WMGI) lies relative
to the last year, and the various major stock groupings and the Healthcare Equipment and Services sector without using time series data, which can confuse the information.