Investing to Wealth

People of the Sun rejoice: First Solar (FSLR) reports tonight! And we're seeing a familiar volatility pattern. Former Momo darling acts well volatility hits 6-month lows so you wonder how much more options get hit once the news comes out. Then you look at the graph below 10-Day HV and you can see options way overprice recent volatility trends. Thirty-day normalized options carry an 80 volatility which is only low when you see it was twice that high last fall. But it's extremely high versus 10-Day HV in the 40 range. I'd expect options volatility to settle somewhere in the middle ...