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 FRANKLIN RESOURCES INC $BEN

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

BEN was recently trading at $26.45 and has an implied volatility of 28.90% for this period. Based on an analysis of the options available for BEN expiring on 20-Mar-2020, there is a 34.78% likelihood that the underlying will close within the analyzed range of $26.45-$28.93 at expiration. In this scenario, the average linear return for the trade would be 27.88%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, FRANKLIN RESOURCES 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 BEN on StockTwits appears to be moderately 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 FRANKLIN RESOURCES INC closed at or above $26.20 on 20-Mar-2020. Based on our analysis, there is a 54.84% 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 ALPHABET INC CLASS A $GOOGL

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

GOOGL was recently trading at $1,525.69 and has an implied volatility of 19.32% for this period. Based on an analysis of the options available for GOOGL expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $1,529.84-$1,653.73 at expiration. In this scenario, the average linear return for the trade would be 66.43%.

52 week high: ALPHABET INC CLASS A recently reached a new 52-week high at $1,530.56. GOOGL had traded in the range $1,027.03-$1,529.88 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 GOOGL maintains its current direction and does not revert back to pricing on the bearish side of $1,525.69 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 ALPHABET INC CLASS A closes at or above $1,528.80 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.35% 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 8.6% move in FRANKLIN RESOURCES INC $BEN

Quantcha now offering unlimited commission-free options trading.

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

BEN was recently trading at $26.45 and has an implied volatility of 30.90% for this period. Based on an analysis of the options available for BEN expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $26.25-$29.57 at expiration. In this scenario, the average linear return for the trade would be 40.66%.

Big 8.56% Change: After closing the last trading session at $24.36, FRANKLIN RESOURCES INC opened today at $27.03 and has reached a high of $27.60.

Trade approach: A movement as big as 8.56% is a significantly bullish indicator, so this trade is designed to be profitable if BEN maintains its current direction and does not revert back to pricing on the bearish side of $26.45 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 FRANKLIN RESOURCES INC closes at or above $25.85 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 55.08% 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: AXSOME THERAPEUTICS INC. COMMON STOCK $AXSM returning up to 49.81% through 19-Jun-2020

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Quantchabot has detected a promising Covered Call trade opportunity for AXSOME THERAPEUTICS INC. COMMON STOCK (AXSM) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AXSM was recently trading at $93.20 and has an implied volatility of 108.97% for this period. Based on an analysis of the options available for AXSM expiring on 19-Jun-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $49.39-$177.90 at expiration. In this scenario, the average linear return for the trade would be 15.23%.

Moneyness: These options are currently 28.60% out of the money and there is a 34.38% likelihood that these options will be exercised before or at expiration.

Most upside: If AXSOME THERAPEUTICS INC. COMMON STOCK closes at or above $120.00, this trade could return up to 49.81%. Based on our analysis, there is a 34.99% 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 40.31% chance the underlying will close at or below its breakeven price of $80.10, 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: AMC ENTERTAINMENT HOLDINGS INC $AMC trading at a 14.85% 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 $7.11 and has an implied volatility of 47.61% 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 $2.76-$19.59 at expiration. In this scenario, the average linear return for the trade would be 75.25%.

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 $0.90 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 $1.95 per share. The final position can be considered as having a discount of $1.06 per share over the underlying price of $7.11 for a 14.85% 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 WALMART INC $WMT

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

WMT was recently trading at $118.44 and has an implied volatility of 18.54% for this period. Based on an analysis of the options available for WMT expiring on 28-Feb-2020, there is a 33.52% likelihood that the underlying will close within the analyzed range of $114.89-$118.44 at expiration. In this scenario, the average linear return for the trade would be 84.72%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, WALMART 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 WMT 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 WALMART INC closed at or below $118.56 on 28-Feb-2020. Based on our analysis, there is a 50.69% 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 -8.0% move in CONAGRA BRANDS INC $CAG

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Quantchabot has detected a promising Bear Call Spread trade opportunity for CONAGRA BRANDS INC (CAG) for the 13-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CAG was recently trading at $30.09 and has an implied volatility of 30.68% for this period. Based on an analysis of the options available for CAG expiring on 13-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $27.83-$30.12 at expiration. In this scenario, the average linear return for the trade would be 58.45%.

Big -7.95% Change: After closing the last trading session at $32.69, CONAGRA BRANDS INC opened today at $30.61 and has reached a low of $30.01.

Trade approach: A movement as big as -7.95% is a significantly bearish indicator, so this trade is designed to be profitable if CAG maintains its current direction and does not revert back to pricing on the bullish side of $30.09 on 13-Mar-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 CONAGRA BRANDS INC closes at or below $30.30 on 13-Mar-2020. Based on our risk-neutral analysis, there is a 52.94% 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 APPLE $AAPL

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Call Spread trade opportunity for APPLE (AAPL) for the 28-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AAPL was recently trading at $317.74 and has an implied volatility of 25.12% for this period. Based on an analysis of the options available for AAPL expiring on 28-Feb-2020, there is a 33.71% likelihood that the underlying will close within the analyzed range of $304.83-$317.75 at expiration. In this scenario, the average linear return for the trade would be 92.20%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, APPLE 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 AAPL 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 APPLE closed at or below $318.70 on 28-Feb-2020. Based on our analysis, there is a 52.42% 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 ALPHABET INC CLASS C $GOOG

Quantcha now offering unlimited commission-free options trading.

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

GOOG was recently trading at $1,527.14 and has an implied volatility of 19.03% for this period. Based on an analysis of the options available for GOOG expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $1,531.30-$1,653.44 at expiration. In this scenario, the average linear return for the trade would be 67.09%.

52 week high: ALPHABET INC CLASS C recently reached a new 52-week high at $1,531.63. GOOG had traded in the range $1,025.00-$1,529.63 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 GOOG maintains its current direction and does not revert back to pricing on the bearish side of $1,527.14 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 ALPHABET INC CLASS C closes at or above $1,531.20 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.03% 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: MYOKARDIA INC. COMMON STOCK $MYOK returning up to 41.70% through 19-Jun-2020

Quantcha now offering unlimited commission-free options trading.

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

MYOK was recently trading at $70.15 and has an implied volatility of 129.51% for this period. Based on an analysis of the options available for MYOK expiring on 19-Jun-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $33.36-$149.23 at expiration. In this scenario, the average linear return for the trade would be 18.61%.

Moneyness: These options are currently 6.62% out of the money and there is a 46.66% likelihood that these options will be exercised before or at expiration.

Most upside: If MYOKARDIA INC. COMMON STOCK closes at or above $149.23, this trade could return up to 41.70%. Based on our analysis, there is a 15.87% 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 35.06% chance the underlying will close at or below its breakeven price of $52.93, 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.