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.

Synthetic Long Discount Alert: BP PRUDHOE BAY $BPT trading at a 11.05% discount for the 19-Jun-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for BP PRUDHOE BAY (BPT) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BPT was recently trading at $6.73 and has an implied volatility of 54.83% for this period. Based on an analysis of the options available for BPT expiring on 19-Jun-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.62-$12.63 at expiration. In this scenario, the average linear return for the trade would be 55.28%.

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 $7.50, which is already $0.77 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 $1.50 per share. The final position can be considered as having a discount of $0.73 per share over the underlying price of $6.73 for a 10.85% 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.

Big Gainer Alert: Trading today’s 17.8% move in MODERNA INC. COMMON STOCK $MRNA

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

MRNA was recently trading at $28.00 and has an implied volatility of 116.93% for this period. Based on an analysis of the options available for MRNA expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.06-$44.12 at expiration. In this scenario, the average linear return for the trade would be 135.09%.

Big 17.85% Change: After closing the last trading session at $23.76, MODERNA INC. COMMON STOCK opened today at $29.05 and has reached a high of $29.98.

Trade approach: A movement as big as 17.85% is a significantly bullish indicator, so this trade is designed to be profitable if MRNA maintains its current direction and does not revert back to pricing on the bearish side of $28.00 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 MODERNA INC. COMMON STOCK closes at or above $26.95 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 53.57% 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 EQUINOR ASA $EQNR

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Quantchabot has detected a promising Bear Put Spread trade opportunity for EQUINOR ASA (EQNR) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EQNR was recently trading at $16.17 and has an implied volatility of 35.83% for this period. Based on an analysis of the options available for EQNR expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.30-$16.21 at expiration. In this scenario, the average linear return for the trade would be 23.73%.

52 week low: EQUINOR ASA recently reached a new 52-week low at $16.04. EQNR had traded in the range $16.05-$23.97 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 EQNR maintains its current direction and does not revert back to pricing on the bullish side of $16.17 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 bearish strategy, the trade would be profitable if EQUINOR ASA closes at or below $16.30 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.82% 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: SAGE THERAPEUTICS INC. COMMON $SAGE returning up to 49.55% through 21-Aug-2020

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Quantchabot has detected a promising Covered Call trade opportunity for SAGE THERAPEUTICS INC. COMMON (SAGE) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SAGE was recently trading at $64.59 and has an implied volatility of 69.62% for this period. Based on an analysis of the options available for SAGE expiring on 21-Aug-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $40.44-$104.84 at expiration. In this scenario, the average linear return for the trade would be 10.20%.

Moneyness: These options are currently 39.64% out of the money and there is a 24.07% likelihood that these options will be exercised before or at expiration.

Most upside: If SAGE THERAPEUTICS INC. COMMON closes at or above $90.00, this trade could return up to 49.55%. Based on our analysis, there is a 24.84% 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 43.43% chance the underlying will close at or below its breakeven price of $60.18, 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.

Big Loser Alert: Trading today’s -8.2% move in JAZZ PHARMACEUTICALS $JAZZ

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

JAZZ was recently trading at $116.87 and has an implied volatility of 45.29% for this period. Based on an analysis of the options available for JAZZ expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $102.41-$117.14 at expiration. In this scenario, the average linear return for the trade would be 66.77%.

Big -8.16% Change: After closing the last trading session at $127.25, JAZZ PHARMACEUTICALS opened today at $111.00 and has reached a low of $111.00.

Trade approach: A movement as big as -8.16% is a significantly bearish indicator, so this trade is designed to be profitable if JAZZ maintains its current direction and does not revert back to pricing on the bullish side of $116.87 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 bearish strategy, the trade would be profitable if JAZZ PHARMACEUTICALS closes at or below $119.10 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 54.92% 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: ANNALY CAPITAL $NLY trading at a 10.24% discount for the 21-Jan-2022 expiration

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

NLY was recently trading at $9.92 and has an implied volatility of 5.48% for this period. Based on an analysis of the options available for NLY expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $7.84-$13.36 at expiration. In this scenario, the average linear return for the trade would be 60.90%.

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 $0.09 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 $1.10 per share. The final position can be considered as having a discount of $1.02 per share over the underlying price of $9.92 for a 10.24% 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: DIREXION DAILY S&P500 BEAR 3X $SPXS returning up to 47.06% through 17-Jul-2020

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Quantchabot has detected a promising Covered Call trade opportunity for DIREXION DAILY S&P500 BEAR 3X (SPXS) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SPXS was recently trading at $13.91 and has an implied volatility of 54.97% for this period. Based on an analysis of the options available for SPXS expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $9.72-$20.17 at expiration. In this scenario, the average linear return for the trade would be 10.32%.

Moneyness: These options are currently 36.54% out of the money and there is a 24.92% likelihood that these options will be exercised before or at expiration.

Most upside: If DIREXION DAILY S&P500 BEAR 3X closes at or above $19.00, this trade could return up to 47.06%. Based on our analysis, there is a 20.14% 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 41.29% chance the underlying will close at or below its breakeven price of $12.92, 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.

52-Week Low Alert: Trading today’s movement in 3M $MMM

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Call Spread trade opportunity for 3M (MMM) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MMM was recently trading at $150.22 and has an implied volatility of 28.09% for this period. Based on an analysis of the options available for MMM expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $135.75-$150.56 at expiration. In this scenario, the average linear return for the trade would be 84.85%.

52 week low: 3M recently reached a new 52-week low at $148.22. MMM had traded in the range $150.58-$219.75 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 MMM maintains its current direction and does not revert back to pricing on the bullish side of $150.22 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 bearish strategy, the trade would be profitable if 3M closes at or below $152.30 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 54.40% 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: CRISPR THERAPEUTICS AG COMMON SHARES $CRSP returning up to 39.51% through 17-Jul-2020

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Quantchabot has detected a promising Covered Call trade opportunity for CRISPR THERAPEUTICS AG COMMON SHARES (CRSP) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CRSP was recently trading at $51.20 and has an implied volatility of 73.06% for this period. Based on an analysis of the options available for CRSP expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $32.40-$81.94 at expiration. In this scenario, the average linear return for the trade would be 10.38%.

Moneyness: These options are currently 26.93% out of the money and there is a 30.79% likelihood that these options will be exercised before or at expiration.

Most upside: If CRISPR THERAPEUTICS AG COMMON SHARES closes at or above $65.00, this trade could return up to 39.51%. Based on our analysis, there is a 30.83% 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 41.40% chance the underlying will close at or below its breakeven price of $46.59, 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.

Big Gainer Alert: Trading today’s 7.0% move in GUARDANT HEALTH INC $GH

Quantcha now offering unlimited commission-free options trading.

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

GH was recently trading at $81.11 and has an implied volatility of 48.21% for this period. Based on an analysis of the options available for GH expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $81.29-$101.81 at expiration. In this scenario, the average linear return for the trade would be 73.65%.

Big 7.01% Change: After closing the last trading session at $75.79, GUARDANT HEALTH INC opened today at $75.36 and has reached a high of $81.45.

Trade approach: A movement as big as 7.01% is a significantly bullish indicator, so this trade is designed to be profitable if GH maintains its current direction and does not revert back to pricing on the bearish side of $81.11 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 GUARDANT HEALTH INC closes at or above $80.50 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.73% 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.