Investing Ideas From 5 Companies Facing High Implied Volatility

Tickers in this article: BRCD BRCM CHK LVS TRI
3. Chesapeake Energy Corporation (CHK): Engages in the acquisition, development, exploration, and production of natural gas and oil properties in the United States. Market cap at $13.51B, most recent closing price at $20.33.

Shares received a boost after Aubrey McClendon said he would retire as CEO. The debt-heavy company acquired too many properties as natural gas prices plunged to new lows in early-2012. Prices have since recovered somewhat. Chespeake options have an implied volatility of around 40%.
 

4. Las Vegas Sands Corp. (LVS): Develops, and operates various integrated resort properties primarily in the United States, Macau, and Singapore. Market cap at $46.01B, most recent closing price at $55.87.

LVS has an implied volatility of 51.7 for February $52.5 option calls. The company reported quarterly (Q4) earnings of $0.54, which was $0.05 lower than estimates. Revenue rose 8.9% to $3 billion. Lower table game holds and a tax assessment reduced margins, but shares rallied higher.

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5. Broadcom Corp. (BRCM): Designs and develops semiconductors for wired and wireless communications. Market cap at $18.83B, most recent closing price at $33.09.

BRCM shares plunged from $35 to prices below $33 recently. The company declared a dividend of $0.11 per share, which is 10% higher than its previous dividend payment. Shareholders of record February 15 will be paid. Broadcom beat estimates by $0.03 per share when its Q4 earnings were announced. Revenue rose 14.3% to $2.08 billion. The company forecast Q1 revenue would be $1.9 billion, which is below the $2 billion consensus. Gross margins will be largely unchanged.

(List compiled by Kapitall Contributor Chris Lau)