Covered Call Alert: AERIE PHARMACEUTICALS INC. CO $AERI returning up to 24.32% through 15-May-2020

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Quantchabot has detected a promising Covered Call trade opportunity for AERIE PHARMACEUTICALS INC. CO (AERI) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AERI was recently trading at $24.00 and has an implied volatility of 83.00% for this period. Based on an analysis of the options available for AERI expiring on 15-May-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $14.72-$39.71 at expiration. In this scenario, the average linear return for the trade would be 10.26%.

Moneyness: These options are currently 4.23% out of the money and there is a 47.37% likelihood that these options will be exercised before or at expiration.

Most upside: If AERIE PHARMACEUTICALS INC. CO closes at or above $25.00, this trade could return up to 24.32%. Based on our analysis, there is a 47.31% likelihood of this return.

The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 35.52% chance the underlying will close at or below its breakeven price of $20.11, resulting in a net loss on the trade.

To find the best covered calls on the market, be sure to check out Quantcha’s covered call screener.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

Covered Call Alert: DELPHI TECHNOLOGIES PLC $DLPH returning up to 29.42% through 19-Jun-2020

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Quantchabot has detected a promising Covered Call trade opportunity for DELPHI TECHNOLOGIES PLC (DLPH) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DLPH was recently trading at $13.03 and has an implied volatility of 64.86% for this period. Based on an analysis of the options available for DLPH expiring on 19-Jun-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $8.48-$20.39 at expiration. In this scenario, the average linear return for the trade would be 10.06%.

Moneyness: These options are currently 15.21% out of the money and there is a 38.00% likelihood that these options will be exercised before or at expiration.

Most upside: If DELPHI TECHNOLOGIES PLC closes at or above $15.00, this trade could return up to 29.42%. Based on our analysis, there is a 38.21% likelihood of this return.

The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 38.66% chance the underlying will close at or below its breakeven price of $11.59, resulting in a net loss on the trade.

To find the best covered calls on the market, be sure to check out Quantcha’s covered call screener.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

StockTwits Trending Alert: Trading recent interest in ETFMG ALTERNATIVE HARVEST ETF $MJ

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Quantchabot has detected a promising Bear Call Spread trade opportunity for ETFMG ALTERNATIVE HARVEST ETF (MJ) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MJ was recently trading at $16.65 and has an implied volatility of 42.19% for this period. Based on an analysis of the options available for MJ expiring on 17-Jan-2020, there is a 33.41% likelihood that the underlying will close within the analyzed range of $15.13-$16.64 at expiration. In this scenario, the average linear return for the trade would be 68.46%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ETFMG ALTERNATIVE HARVEST ETF was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in MJ on StockTwits appears to be moderately negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bearish strategy, the trade would be profitable if ETFMG ALTERNATIVE HARVEST ETF closed at or below $16.70 on 17-Jan-2020. Based on our analysis, there is a 50.89% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

StockTwits Trending Alert: Trading recent interest in BURLINGTON STORES INC $BURL

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Quantchabot has detected a promising Bull Put Spread trade opportunity for BURLINGTON STORES INC (BURL) for the 10-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BURL was recently trading at $230.00 and has an implied volatility of 21.27% for this period. Based on an analysis of the options available for BURL expiring on 10-Jan-2020, there is a 34.64% likelihood that the underlying will close within the analyzed range of $230.02-$238.41 at expiration. In this scenario, the average linear return for the trade would be 55.15%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, BURLINGTON STORES INC was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in BURL on StockTwits appears to be significantly positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bullish strategy, the trade would be profitable if BURLINGTON STORES INC closed at or above $229.55 on 10-Jan-2020. Based on our analysis, there is a 52.78% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

Big Gainer Alert: Trading today’s 9.5% move in DURECT $DRRX

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Quantchabot has detected a promising Bull Put Spread trade opportunity for DURECT (DRRX) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DRRX was recently trading at $3.87 and has an implied volatility of 149.28% for this period. Based on an analysis of the options available for DRRX expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.88-$7.48 at expiration. In this scenario, the average linear return for the trade would be 71.58%.

Big 9.51% Change: After closing the last trading session at $3.53, DURECT opened today at $3.75 and has reached a high of $3.87.

Trade approach: A movement as big as 9.51% is a significantly bullish indicator, so this trade is designed to be profitable if DRRX maintains its current direction and does not revert back to pricing on the bearish side of $3.87 on 21-Feb-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if DURECT closes at or above $3.80 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 51.20% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

Big Gainer Alert: Trading today’s 7.0% move in THE MICHAELS COMPANIES INC. C $MIK

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for THE MICHAELS COMPANIES INC. C (MIK) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MIK was recently trading at $8.01 and has an implied volatility of 73.54% for this period. Based on an analysis of the options available for MIK expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.03-$10.60 at expiration. In this scenario, the average linear return for the trade would be 70.18%.

Big 7.02% Change: After closing the last trading session at $7.48, THE MICHAELS COMPANIES INC. C opened today at $7.27 and has reached a high of $8.08.

Trade approach: A movement as big as 7.02% is a significantly bullish indicator, so this trade is designed to be profitable if MIK maintains its current direction and does not revert back to pricing on the bearish side of $8.01 on 21-Feb-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if THE MICHAELS COMPANIES INC. C closes at or above $7.90 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 52.27% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

52-Week High Alert: Trading today’s movement in BURLINGTON STORES INC $BURL

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Quantchabot has detected a promising Bull Put Spread trade opportunity for BURLINGTON STORES INC (BURL) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BURL was recently trading at $230.29 and has an implied volatility of 22.18% for this period. Based on an analysis of the options available for BURL expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $230.89-$251.10 at expiration. In this scenario, the average linear return for the trade would be 47.06%.

52 week high: BURLINGTON STORES INC recently reached a new 52-week high at $230.70. BURL had traded in the range $136.30-$229.96 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if BURL maintains its current direction and does not revert back to pricing on the bearish side of $230.29 on 21-Feb-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if BURLINGTON STORES INC closes at or above $226.80 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 58.44% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

Synthetic Long Discount Alert: AMC ENTERTAINMENT HOLDINGS INC $AMC trading at a 12.11% discount for the 21-Jan-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for AMC ENTERTAINMENT HOLDINGS INC (AMC) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMC was recently trading at $7.22 and has an implied volatility of 32.86% for this period. Based on an analysis of the options available for AMC expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.34-$16.98 at expiration. In this scenario, the average linear return for the trade would be 62.61%.

Upside potential: This synthetic long position offers the same potential benefits and liabilities as a long stock position, but at a discount due to the significant premium at-the-money puts are trading at over calls. In this case, the put position is opened at a strike of $8.00, which is already $0.78 in-the-money. However, its sale more than offsets this moneyness and the cost of the long call that the trade results in a net credit of of $1.65 per share. The final position can be considered as having a discount of $0.87 per share over the underlying price of $7.22 for a 12.09% total.

Downside risk: This discount is generally a sign of the stock facing considerable short pressure, and may indicate that the stock has become hard to borrow. However, if you have a long view of the underlying over this period, it could be a good opportunity to benefit from the upside at a major discount.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

Synthetic Long Discount Alert: CLOVIS ONCOLOGY $CLVS trading at a 15.37% discount for the 15-Jan-2021 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for CLOVIS ONCOLOGY (CLVS) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CLVS was recently trading at $10.28 and has an implied volatility of 73.72% for this period. Based on an analysis of the options available for CLVS expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.52-$31.37 at expiration. In this scenario, the average linear return for the trade would be 71.98%.

Upside potential: This synthetic long position offers the same potential benefits and liabilities as a long stock position, but at a discount due to the significant premium at-the-money puts are trading at over calls. In this case, the long call position is opened at a strike of $10.00, which is already $0.28 in the money. An out-of-the-money put at the same strike is sold to finance the call, resulting in a net credit of $1.30 per share. The final position can be considered as having a discount of $1.58 per share over the underlying price of $10.28 for a 15.38% total.

Downside risk: This discount is generally a sign of the stock facing considerable short pressure, and may indicate that the stock has become hard to borrow. However, if you have a long view of the underlying over this period, it could be a good opportunity to benefit from the upside at a major discount.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

StockTwits Trending Alert: Trading recent interest in WAVE LIFE SCIENCES LTD. ORDINARY SHARES $WVE

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for WAVE LIFE SCIENCES LTD. ORDINARY SHARES (WVE) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WVE was recently trading at $8.09 and has an implied volatility of 119.05% for this period. Based on an analysis of the options available for WVE expiring on 17-Jan-2020, there is a 34.30% likelihood that the underlying will close within the analyzed range of $8.09-$10.69 at expiration. In this scenario, the average linear return for the trade would be 75.98%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, WAVE LIFE SCIENCES LTD. ORDINARY SHARES was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in WVE on StockTwits appears to be significantly positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bullish strategy, the trade would be profitable if WAVE LIFE SCIENCES LTD. ORDINARY SHARES closed at or above $7.85 on 17-Jan-2020. Based on our analysis, there is a 54.39% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.