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Actionable news in SWHC: Smith & Wesson Holding Corporation,

Smith & Wesson's Options Are Clearly Undervalued: Learn How To Profit From That!

Smith & Wesson's (SWHC) shares have had quite a roller-coaster over the last year:

In fact, this volatility can be expressed in historical standard deviation figures, which have been above-average compared to the broader market's data:

(Source: Google Finance. Calculations by author)

On the other hand, the short-term options on this stock are currently in the second quartile, based on readings from the last 600 trading days:


The straddle expiring in August is currently worth around 7.5% of the stock's market value which is substantially lower than the historical figures for the same duration (over 13% per month). Therefore, I recommend buying straddles expiring in August: