All posts by Automated Ideas

Ideas posted by this account are automatically generated based on market analysis. Please be aware that they are not vetted and the publishing process is completely automated. If you have any feedback about the ideas posted, please email hello@quantcha.com.

StockTwits Trending Alert: Trading recent interest in HSBC HOLDINGS $HSBC

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Quantchabot has detected a promising Bull Put Spread trade opportunity for HSBC HOLDINGS (HSBC) for the 28-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HSBC was recently trading at $36.04 and has an implied volatility of 16.66% for this period. Based on an analysis of the options available for HSBC expiring on 28-Feb-2020, there is a 34.38% likelihood that the underlying will close within the analyzed range of $36.05-$38.06 at expiration. In this scenario, the average linear return for the trade would be 127.92%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, HSBC HOLDINGS 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 HSBC 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 HSBC HOLDINGS closed at or above $35.86 on 28-Feb-2020. Based on our analysis, there is a 54.05% 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 HOME DEPOT $HD

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

HD was recently trading at $245.90 and has an implied volatility of 18.09% for this period. Based on an analysis of the options available for HD expiring on 21-Feb-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $245.94-$250.18 at expiration. In this scenario, the average linear return for the trade would be 54.32%.

52 week high: HOME DEPOT recently reached a new 52-week high at $246.00. HD had traded in the range $179.52-$245.20 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 HD maintains its current direction and does not revert back to pricing on the bearish side of $245.90 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 HOME DEPOT closes at or above $245.52 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 53.96% 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 MASTERCARD $MA

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Quantchabot has detected a promising Bull Call Spread trade opportunity for MASTERCARD (MA) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MA was recently trading at $341.25 and has an implied volatility of 19.99% for this period. Based on an analysis of the options available for MA expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $341.78-$370.02 at expiration. In this scenario, the average linear return for the trade would be 66.89%.

52 week high: MASTERCARD recently reached a new 52-week high at $343.10. MA had traded in the range $215.93-$341.04 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 MA maintains its current direction and does not revert back to pricing on the bearish side of $341.25 on 17-Apr-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 MASTERCARD closes at or above $340.85 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.37% 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 10.1% move in FUELCELL ENERGY $FCEL

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Quantchabot has detected a promising Secured Put trade opportunity for FUELCELL ENERGY (FCEL) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FCEL was recently trading at $2.29 and has an implied volatility of 158.44% for this period. Based on an analysis of the options available for FCEL expiring on 21-Feb-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $2.29-$2.74 at expiration. In this scenario, the average linear return for the trade would be 10.86%.

Big 10.10% Change: After closing the last trading session at $2.08, FUELCELL ENERGY opened today at $2.08 and has reached a high of $2.35.

Trade approach: A movement as big as 10.10% is a significantly bullish indicator, so this trade is designed to be profitable if FCEL maintains its current direction and does not revert back to pricing on the bearish side of $2.29 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 FUELCELL ENERGY closes at or above $2.20 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 58.87% 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: TILRAY INC. CLASS 2 COMMON STOCK $TLRY trading at a 13.68% discount for the 15-Jan-2021 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for TILRAY INC. CLASS 2 COMMON STOCK (TLRY) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TLRY was recently trading at $17.10 and has an implied volatility of 53.54% for this period. Based on an analysis of the options available for TLRY expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $7.92-$38.10 at expiration. In this scenario, the average linear return for the trade would be 56.64%.

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 $17.50, which is already $0.40 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 $2.70 per share. The final position can be considered as having a discount of $2.30 per share over the underlying price of $17.10 for a 13.45% 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.

Covered Call Alert: TG THERAPEUTICS $TGTX returning up to 20.39% through 15-May-2020

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Quantchabot has detected a promising Covered Call trade opportunity for TG THERAPEUTICS (TGTX) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TGTX was recently trading at $16.05 and has an implied volatility of 112.92% for this period. Based on an analysis of the options available for TGTX expiring on 15-May-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $9.45-$27.49 at expiration. In this scenario, the average linear return for the trade would be 10.81%.

Moneyness: These options are currently 6.54% in the money and there is a 55.27% likelihood that these options will be exercised before or at expiration.

Most upside: If TG THERAPEUTICS closes at or above $15.00, this trade could return up to 20.39%. Based on our analysis, there is a 55.34% 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 31.51% chance the underlying will close at or below its breakeven price of $12.46, 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.

Synthetic Long Discount Alert: CANOPY GROWTH CORP $CGC trading at a 13.52% discount for the 15-Jan-2021 expiration

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

CGC was recently trading at $22.65 and has an implied volatility of 44.81% for this period. Based on an analysis of the options available for CGC expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $12.04-$43.98 at expiration. In this scenario, the average linear return for the trade would be 57.16%.

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 $22.50, which is already $0.15 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 $2.90 per share. The final position can be considered as having a discount of $3.05 per share over the underlying price of $22.65 for a 13.47% 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.

52-Week High Alert: Trading today’s movement in VISA $V

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Quantchabot has detected a promising Bull Put Spread trade opportunity for VISA (V) for the 3-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

V was recently trading at $210.70 and has an implied volatility of 18.10% for this period. Based on an analysis of the options available for V expiring on 3-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $211.14-$225.06 at expiration. In this scenario, the average linear return for the trade would be 66.54%.

52 week high: VISA recently reached a new 52-week high at $210.80. V had traded in the range $143.18-$210.78 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 V maintains its current direction and does not revert back to pricing on the bearish side of $210.70 on 3-Apr-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 VISA closes at or above $210.45 on 3-Apr-2020. Based on our risk-neutral analysis, there is a 52.04% 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.

Covered Call Alert: AMARIN $AMRN returning up to 24.31% through 19-Jun-2020

Quantcha now offering unlimited commission-free options trading.

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

AMRN was recently trading at $18.06 and has an implied volatility of 87.22% for this period. Based on an analysis of the options available for AMRN expiring on 19-Jun-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $11.12-$29.67 at expiration. In this scenario, the average linear return for the trade would be 12.57%.

Moneyness: These options are currently 0.41% in the money and there is a 50.71% likelihood that these options will be exercised before or at expiration.

Most upside: If AMARIN closes at or above $18.00, this trade could return up to 24.31%. Based on our analysis, there is a 50.74% 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 32.21% chance the underlying will close at or below its breakeven price of $14.48, 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 ADVANCE AUTO PARTS $AAP

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for ADVANCE AUTO PARTS (AAP) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AAP was recently trading at $144.42 and has an implied volatility of 28.38% for this period. Based on an analysis of the options available for AAP expiring on 20-Mar-2020, there is a 35.36% likelihood that the underlying will close within the analyzed range of $144.18-$157.75 at expiration. In this scenario, the average linear return for the trade would be 50.80%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ADVANCE AUTO PARTS 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 AAP 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 ADVANCE AUTO PARTS closed at or above $143.95 on 20-Mar-2020. Based on our analysis, there is a 51.96% 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.