DISH Network Corporation (NASDAQ:DISH) Risk Points versus Consumer Discretionary (XLY)
This is a scatter plot analysis of the critical risk points from the option market for DISH Network Corporation (NASDAQ:DISH)
compared to its own past and the Consumer Discretionary ETF. In order to examine the forward looking risk for DISH Network Corporation (NASDAQ:DISH) the next 30-days, we must look to the option market.
Now, before we dive into the analysis on DISH, we make one critical note since we’re talking about options:
Option trading isn’t about luck — this four minute video will change your trading life forever: Option Trading and Truth
In the “Why This Matters” section at the end of this article on DISH Network Corporation (NASDAQ:DISH) , 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 DISH Network Corporation (NASDAQ:DISH) . We start by noting that DISH is in the media sector which means along with some other industries we also compare the company to the closest match we could find, which was
the Consumer Discretionary ETF (XLY) as a proxy for DISH Network Corporation.
We have highlighted the IV30® for XLY and for DISH in the table below.
|CONTEXT: THE INDICES|
|S&P 500 (SPY)||IV30||7.68%|
|Nasdaq 100 (QQQ)||IV30||12.88%|
|Consumer Discretionary ETF (XLY)||IV30||9.5%|
|DISH Network Corporation (NASDAQ:DISH)|
|DISH 52 Week Low||IV30||27.61%|
|DISH 52 Week High||IV30||48.46%|
DISH Network Corporation 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 DISH Network Corporation.
The black point is the current 30-day implied volatility for the Consumer Discretionary ETF (XLY).
The red point is the 52 week low in IV30® for DISH Network Corporation.
The green point is the 52 week high in IV30® for DISH Network Corporation.
The various other scatter plot points in the middle give us risk context outside of the media 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 DISH Network Corporation is above all the indices we have
charted including the Consumer Discretionary ETF (XLY).
* We can further see that the current IV30 for DISH Network Corporation of 30.95% is closer to the annual low of 27.61% than the annual high of 48.46%.
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 Consumer Discretionary ETF is between [8.88%, 19.14%]
while DISH Network Corporation has had a range of [27.61%, 48.46%].
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 DISH Network Corporation (NASDAQ:DISH) lies relative
to the last year, and the various major stock groupings and the Media sector without using time series data, which can confuse the information.