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Anavex Life Sciences Corp. Risk Points versus Health Care



Anavex Life Sciences Corp. Risk Points versus Health Care

Anavex Life Sciences Corp. (NASDAQ:AVXL) Risk Points versus Health Care (XLV)

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PREFACE


This is a scatter plot analysis of the critical risk points from the option market for Anavex Life Sciences Corp. (NASDAQ:AVXL)
compared to its own past and the Health Care ETF. In order to examine the forward looking risk for Anavex Life Sciences Corp. (NASDAQ:AVXL) the next 30-days, we must look to the option market.

Now, before we dive into the analysis on AVXL, 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 Anavex Life Sciences Corp. (NASDAQ:AVXL) , 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. The whole concept of an “option trading expert” is vastly over complicated
in order to dissuade non-professional traders from gaining the knowledge that the pros have.

But that’s at the end, now let’s jump back into the risk point charting and number crunching for Anavex Life Sciences Corp. (NASDAQ:AVXL) . We start by noting that AVXL is in the biotechnology and pharmaceutical 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 Anavex Life Sciences Corp..

We have highlighted the IV30® for XLV and for AVXL in the table below.




SNAPSHOT SUMMARY














CONTEXT: THE INDICES
S&P 500 (SPY) IV30     8.99%
Nasdaq 100 (QQQ) IV30     10.56%
Health Care ETF (XLV) IV30     11.51%
Biotech (IBB) IV30     20.61%

Anavex Life Sciences Corp. (NASDAQ:AVXL)
AVXL 52 Week Low IV30     96.56%
AVXL Current IV30     114.46%
AVXL 52 Week High IV30     188.13%

AVXL Current HV30     35.42%




Anavex Life Sciences Corp. 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 Anavex Life Sciences Corp..


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 Anavex Life Sciences Corp..


The green point is the 52 week high in IV30® for Anavex Life Sciences Corp..

The various other scatter plot points in the middle give us risk context outside of the biotechnology and pharmaceutical 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 Anavex Life Sciences Corp. is above all the indices we have
charted including the Health Care ETF (XLV).

* We can further see that the current IV30 for Anavex Life Sciences Corp. of 114.46% is closer to the annual low of 96.56% than the annual high of 188.13%.
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 [10.95%, 27.57%]
while Anavex Life Sciences Corp. has had a range of [96.56%, 188.13%].


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 Anavex Life Sciences Corp. (NASDAQ:AVXL) lies relative
to the last year, and the various major stock groupings and the Biotechnology and Pharmaceutical sector without using time series data, which can confuse the information.











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