Stock Volatility Risk Alert: Centurylink [telecom]

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Before we cover the full analysis we make a quick alert here that
CenturyLink Inc (NYSE:CTL) has seen its stock price whip around at a
notable 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 50.5% verus the HV20 of the S&P
500 at 5.98%.

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

Bill Horne
(Remove QRM from my email address to write to me directly)

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