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What's happening: Shares of LifeLock (NYSE: LOCK) rose as much as 10.9% on Friday before falling back to a more modest 7% gain. Trading volumes started relatively slow, but picked up speed at share prices peaked.

Why it's happening : The identity theft protection specialist is extremely volatile, and investors are looking for stability. LifeLock shares fell more than 50% in July, due to a fraud investigation by the Federal Trade Commission and 35 state governments. According to that FTC order, LifeLock has repeatedly failed to protect its customers' most sensitive data, yet continued to sell services as virtually bullet proof.

Nowadays, LifeLock admits that "no one can prevent all identity theft," and hopes to come out out of the FTC investigation looking both clean and trustworthy.

Owning this stock isn't for the faint of heart these days. Shorting it takes even steelier nerves. So the stock swings far and wide, often on no news at all.Despite the recent share price plunge, some 16% of LifeLock's shares were still sold short at the end of July. Friday's stock price surge might have included short-sellers taking some profits off the table ahead of the weekend. Meanwhile, investors are waiting for updates on the FTC investigation, which could go either way. Whether the outcome is positive or not, that announcement will pull LifeLock's stock along for a dramatic ride in the same direction.

Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends LifeLock. Try any of our Foolish newsletter services free for 30 days.

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