La-Z-Boy Incorporated (NYSE:LZB) Risk Points versus Consumer Discretionary (XLY)
This is a scatter plot analysis of the critical risk points from the option market for La-Z-Boy Incorporated (NYSE:LZB)
compared to its own past and the Consumer Discretionary ETF. In order to examine the forward looking risk for La-Z-Boy Incorporated (NYSE:LZB) the next 30-days, we must look to the option market.
Now, before we dive into the analysis on LZB, 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 La-Z-Boy Incorporated (NYSE:LZB) , 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 La-Z-Boy Incorporated (NYSE:LZB) . We start by noting that LZB is in the consumer durables and apparel 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 La-Z-Boy Incorporated.
We have highlighted the IV30® for XLY and for LZB in the table below.
|CONTEXT: THE INDICES|
|S&P 500 (SPY)||IV30||7.86%|
|Nasdaq 100 (QQQ)||IV30||12.36%|
|Consumer Discretionary ETF (XLY)||IV30||9.12%|
|La-Z-Boy Incorporated (NYSE:LZB)|
|LZB 52 Week Low||IV30||24.66%|
|LZB 52 Week High||IV30||57.89%|
La-Z-Boy Incorporated 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 La-Z-Boy Incorporated.
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 La-Z-Boy Incorporated.
The green point is the 52 week high in IV30® for La-Z-Boy Incorporated.
The various other scatter plot points in the middle give us risk context outside of the consumer durables and apparel 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 La-Z-Boy Incorporated is above all the indices we have
charted including the Consumer Discretionary ETF (XLY).
* We can further see that the current IV30 for La-Z-Boy Incorporated of 28.24% is closer to the annual low of 24.66% than the annual high of 57.89%.
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 La-Z-Boy Incorporated has had a range of [24.66%, 57.89%].
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 La-Z-Boy Incorporated (NYSE:LZB) lies relative
to the last year, and the various major stock groupings and the Consumer Durables and Apparel sector without using time series data, which can confuse the information.