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.

52-Week High Alert: Trading today’s movement in SEATTLE GENETICS $SGEN

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

SGEN was recently trading at $123.26 and has an implied volatility of 59.22% for this period. Based on an analysis of the options available for SGEN expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $123.29-$136.22 at expiration. In this scenario, the average linear return for the trade would be 14.75%.

52 week high: SEATTLE GENETICS recently reached a new 52-week high at $128.00. SGEN had traded in the range $62.90-$124.32 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 SGEN maintains its current direction and does not revert back to pricing on the bearish side of $123.26 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 SEATTLE GENETICS closes at or above $122.30 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 53.24% 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 DIGITAL REALTY TRUST $DLR

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Quantchabot has detected a promising Bull Put Spread trade opportunity for DIGITAL REALTY TRUST (DLR) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DLR was recently trading at $142.90 and has an implied volatility of 42.38% for this period. Based on an analysis of the options available for DLR expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $142.94-$153.51 at expiration. In this scenario, the average linear return for the trade would be 29.13%.

52 week high: DIGITAL REALTY TRUST recently reached a new 52-week high at $144.06. DLR had traded in the range $105.00-$143.61 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 DLR maintains its current direction and does not revert back to pricing on the bearish side of $142.90 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 DIGITAL REALTY TRUST closes at or above $142.55 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.53% 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 7.7% move in CONOCOPHILLIPS $COP

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for CONOCOPHILLIPS (COP) for the 24-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

COP was recently trading at $35.31 and has an implied volatility of 82.44% for this period. Based on an analysis of the options available for COP expiring on 24-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.33-$42.28 at expiration. In this scenario, the average linear return for the trade would be 41.42%.

Big 7.65% Change: After closing the last trading session at $32.80, CONOCOPHILLIPS opened today at $34.88 and has reached a high of $35.88.

Trade approach: A movement as big as 7.65% is a significantly bullish indicator, so this trade is designed to be profitable if COP maintains its current direction and does not revert back to pricing on the bearish side of $35.31 on 24-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 CONOCOPHILLIPS closes at or above $35.12 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 51.30% 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 TECHNOLOGY SELECT SECTOR SPDR $XLK

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Quantchabot has detected a promising Bear Call Spread trade opportunity for TECHNOLOGY SELECT SECTOR SPDR (XLK) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

XLK was recently trading at $84.41 and has an implied volatility of 44.03% for this period. Based on an analysis of the options available for XLK expiring on 17-Apr-2020, there is a 34.02% likelihood that the underlying will close within the analyzed range of $78.40-$84.41 at expiration. In this scenario, the average linear return for the trade would be 110.16%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, TECHNOLOGY SELECT SECTOR SPDR 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 XLK 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 TECHNOLOGY SELECT SECTOR SPDR closed at or below $84.85 on 17-Apr-2020. Based on our analysis, there is a 52.65% 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: CO-DIAGNOSTICS INC. COMMON STOCK $CODX trading at a 15.36% discount for the 20-Nov-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for CO-DIAGNOSTICS INC. COMMON STOCK (CODX) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CODX was recently trading at $9.57 and has an implied volatility of 200.17% for this period. Based on an analysis of the options available for CODX expiring on 20-Nov-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $1.99-$46.80 at expiration. In this scenario, the average linear return for the trade would be 80.64%.

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 $10.00, which is already $0.43 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 $1.90 per share. The final position can be considered as having a discount of $1.47 per share over the underlying price of $9.57 for a 15.36% 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.

Big Gainer Alert: Trading today’s 7.1% move in METLIFE $MET

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for METLIFE (MET) for the 1-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MET was recently trading at $32.81 and has an implied volatility of 63.48% for this period. Based on an analysis of the options available for MET expiring on 1-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $32.83-$38.69 at expiration. In this scenario, the average linear return for the trade would be 34.40%.

Big 7.12% Change: After closing the last trading session at $30.63, METLIFE opened today at $32.85 and has reached a high of $33.64.

Trade approach: A movement as big as 7.12% is a significantly bullish indicator, so this trade is designed to be profitable if MET maintains its current direction and does not revert back to pricing on the bearish side of $32.81 on 1-May-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 METLIFE closes at or above $32.72 on 1-May-2020. Based on our risk-neutral analysis, there is a 50.83% 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 10.8% move in GENERAL MOTORS $GM

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for GENERAL MOTORS (GM) for the 1-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GM was recently trading at $21.67 and has an implied volatility of 104.41% for this period. Based on an analysis of the options available for GM expiring on 1-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $21.68-$28.40 at expiration. In this scenario, the average linear return for the trade would be 25.24%.

Big 10.84% Change: After closing the last trading session at $19.55, GENERAL MOTORS opened today at $21.27 and has reached a high of $21.80.

Trade approach: A movement as big as 10.84% is a significantly bullish indicator, so this trade is designed to be profitable if GM maintains its current direction and does not revert back to pricing on the bearish side of $21.67 on 1-May-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 GENERAL MOTORS closes at or above $21.34 on 1-May-2020. Based on our risk-neutral analysis, there is a 52.37% 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 Loser Alert: Trading today’s -9.4% move in ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO $ZM

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Quantchabot has detected a promising Covered Put trade opportunity for ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO (ZM) for the 22-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ZM was recently trading at $111.35 and has an implied volatility of 96.56% for this period. Based on an analysis of the options available for ZM expiring on 22-May-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $79.31-$111.49 at expiration. In this scenario, the average linear return for the trade would be 610.53%.

Big -9.43% Change: After closing the last trading session at $122.94, ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO opened today at $118.00 and has reached a low of $110.65.

Trade approach: A movement as big as -9.43% is a significantly bearish indicator, so this trade is designed to be profitable if ZM maintains its current direction and does not revert back to pricing on the bullish side of $111.35 on 22-May-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO closes at or below $166.74 on 22-May-2020. Based on our risk-neutral analysis, there is a 88.14% 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 Low Alert: Trading today’s movement in GOLAR LNG $GLNG

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Quantchabot has detected a promising Covered Put trade opportunity for GOLAR LNG (GLNG) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GLNG was recently trading at $5.53 and has an implied volatility of 148.31% for this period. Based on an analysis of the options available for GLNG expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.42-$5.54 at expiration. In this scenario, the average linear return for the trade would be 48.42%.

52 week low: GOLAR LNG recently reached a new 52-week low at $5.51. GLNG had traded in the range $5.60-$21.97 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if GLNG maintains its current direction and does not revert back to pricing on the bullish side of $5.53 on 15-May-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if GOLAR LNG closes at or below $6.12 on 15-May-2020. Based on our risk-neutral analysis, there is a 58.26% 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 CITRIX SYSTEMS $CTXS

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

CTXS was recently trading at $144.73 and has an implied volatility of 41.57% for this period. Based on an analysis of the options available for CTXS expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $144.77-$155.29 at expiration. In this scenario, the average linear return for the trade would be 15.74%.

52 week high: CITRIX SYSTEMS recently reached a new 52-week high at $148.00. CTXS had traded in the range $90.28-$146.40 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 CTXS maintains its current direction and does not revert back to pricing on the bearish side of $144.73 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 CITRIX SYSTEMS closes at or above $143.50 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 55.00% 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.