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: PG&E $PCG trading at a 10.46% discount for the 15-Jan-2021 expiration

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

PCG was recently trading at $7.66 and has an implied volatility of 111.51% for this period. Based on an analysis of the options available for PCG expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $2.25-$26.55 at expiration. In this scenario, the average linear return for the trade would be 56.73%.

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 $0.34 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 $1.15 per share. The final position can be considered as having a discount of $0.81 per share over the underlying price of $7.66 for a 10.57% 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: ALLIANCEBERNSTEIN $AB trading at a 10.08% discount for the 18-Dec-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for ALLIANCEBERNSTEIN (AB) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AB was recently trading at $14.74 and has an implied volatility of 53.04% for this period. Based on an analysis of the options available for AB expiring on 18-Dec-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $7.76-$28.38 at expiration. In this scenario, the average linear return for the trade would be 43.46%.

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 $15.00, which is already $0.27 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 $1.75 per share. The final position can be considered as having a discount of $1.49 per share over the underlying price of $14.74 for a 10.08% 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 DOMINO'S PIZZA $DPZ

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

DPZ was recently trading at $326.12 and has an implied volatility of 63.24% for this period. Based on an analysis of the options available for DPZ expiring on 3-Apr-2020, there is a 33.70% likelihood that the underlying will close within the analyzed range of $326.62-$365.19 at expiration. In this scenario, the average linear return for the trade would be 25.14%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DOMINO'S PIZZA 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 DPZ 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 DOMINO'S PIZZA closed at or above $325.00 on 3-Apr-2020. Based on our analysis, there is a 51.32% 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 DUNKIN BRANDS GROUP $DNKN

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for DUNKIN BRANDS GROUP (DNKN) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DNKN was recently trading at $43.30 and has an implied volatility of 88.85% for this period. Based on an analysis of the options available for DNKN expiring on 17-Apr-2020, there is a 34.25% likelihood that the underlying will close within the analyzed range of $43.30-$55.99 at expiration. In this scenario, the average linear return for the trade would be 48.41%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DUNKIN BRANDS GROUP 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 DNKN 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 DUNKIN BRANDS GROUP closed at or above $43.10 on 17-Apr-2020. Based on our analysis, there is a 50.82% 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.

52-Week Low Alert: Trading today’s movement in JOHNSON & JOHNSON $JNJ

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Quantchabot has detected a promising Bear Put Spread trade opportunity for JOHNSON & JOHNSON (JNJ) for the 9-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

JNJ was recently trading at $116.32 and has an implied volatility of 52.83% for this period. Based on an analysis of the options available for JNJ expiring on 9-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $103.00-$116.38 at expiration. In this scenario, the average linear return for the trade would be 36.20%.

52 week low: JOHNSON & JOHNSON recently reached a new 52-week low at $113.19. JNJ had traded in the range $122.43-$154.50 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 JNJ maintains its current direction and does not revert back to pricing on the bullish side of $116.32 on 9-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 JOHNSON & JOHNSON closes at or below $116.56 on 9-Apr-2020. Based on our risk-neutral analysis, there is a 50.52% 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 13.6% move in ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO $ZM

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Quantchabot has detected a promising Bull Call Spread trade opportunity for ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO (ZM) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ZM was recently trading at $148.25 and has an implied volatility of 96.16% for this period. Based on an analysis of the options available for ZM expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $148.45-$214.88 at expiration. In this scenario, the average linear return for the trade would be 90.56%.

Big 13.56% Change: After closing the last trading session at $130.55, ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO opened today at $142.00 and has reached a high of $149.00.

Trade approach: A movement as big as 13.56% is a significantly bullish indicator, so this trade is designed to be profitable if ZM maintains its current direction and does not revert back to pricing on the bearish side of $148.25 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 bullish strategy, the trade would be profitable if ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO closes at or above $147.50 on 15-May-2020. Based on our risk-neutral 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.

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

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

V was recently trading at $140.81 and has an implied volatility of 68.30% for this period. Based on an analysis of the options available for V expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $117.40-$140.90 at expiration. In this scenario, the average linear return for the trade would be 75.41%.

52 week low: VISA recently reached a new 52-week low at $136.15. V had traded in the range $139.80-$214.17 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 V maintains its current direction and does not revert back to pricing on the bullish side of $140.81 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 VISA closes at or below $141.20 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.46% 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 BERKSHIRE HATHAWAY $BRK.B

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Quantchabot has detected a promising Bear Put Spread trade opportunity for BERKSHIRE HATHAWAY (BRK.B) for the 24-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BRK.B was recently trading at $165.71 and has an implied volatility of 52.11% for this period. Based on an analysis of the options available for BRK.B expiring on 24-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $141.31-$165.85 at expiration. In this scenario, the average linear return for the trade would be 49.71%.

52 week low: BERKSHIRE HATHAWAY recently reached a new 52-week low at $161.30. BRK.B had traded in the range $166.00-$231.61 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 BRK.B maintains its current direction and does not revert back to pricing on the bullish side of $165.71 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 bearish strategy, the trade would be profitable if BERKSHIRE HATHAWAY closes at or below $165.90 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 50.08% 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.

StockTwits Trending Alert: Trading recent interest in DIREXION DAILY SMALL CAP BEAR $TZA

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Quantchabot has detected a promising Covered Put trade opportunity for DIREXION DAILY SMALL CAP BEAR (TZA) for the 3-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TZA was recently trading at $95.08 and has an implied volatility of 247.49% for this period. Based on an analysis of the options available for TZA expiring on 3-Apr-2020, there is a 33.90% likelihood that the underlying will close within the analyzed range of $62.17-$94.87 at expiration. In this scenario, the average linear return for the trade would be 104.84%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DIREXION DAILY SMALL CAP BEAR 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 TZA 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 DIREXION DAILY SMALL CAP BEAR closed at or below $138.90 on 3-Apr-2020. Based on our analysis, there is a 81.35% 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 Loser Alert: Trading today’s -7.7% move in TRUIST FINANCIAL CORP $TFC

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

TFC was recently trading at $27.73 and has an implied volatility of 65.52% for this period. Based on an analysis of the options available for TFC expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $22.47-$27.75 at expiration. In this scenario, the average linear return for the trade would be 21.47%.

Big -7.69% Change: After closing the last trading session at $30.04, TRUIST FINANCIAL CORP opened today at $28.00 and has reached a low of $27.39.

Trade approach: A movement as big as -7.69% is a significantly bearish indicator, so this trade is designed to be profitable if TFC maintains its current direction and does not revert back to pricing on the bullish side of $27.73 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 bearish strategy, the trade would be profitable if TRUIST FINANCIAL CORP closes at or below $28.39 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 54.32% 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.