Category Archives: Trade Ideas

Covered Call Alert: STAMPS.COM $STMP returning up to 15.64% through 15-May-2020

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

STMP was recently trading at $87.69 and has an implied volatility of 82.78% for this period. Based on an analysis of the options available for STMP expiring on 15-May-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $58.43-$132.74 at expiration. In this scenario, the average linear return for the trade would be 10.01%.

Moneyness: These options are currently 8.73% in the money and there is a 58.79% likelihood that these options will be exercised before or at expiration.

Most upside: If STAMPS.COM closes at or above $80.00, this trade could return up to 15.64%. Based on our analysis, there is a 59.26% 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 27.81% chance the underlying will close at or below its breakeven price of $69.18, 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.

Synthetic Long Discount Alert: ALLIANCE RESOURCE PARTNER $ARLP trading at a 10.35% discount for the 21-Jan-2022 expiration

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

ARLP was recently trading at $7.93 and has an implied volatility of 26.24% for this period. Based on an analysis of the options available for ARLP expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.64-$18.55 at expiration. In this scenario, the average linear return for the trade would be 59.12%.

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 $7.50, which is already $0.43 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 $0.40 per share. The final position can be considered as having a discount of $0.83 per share over the underlying price of $7.93 for a 10.42% 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 Loser Alert: Trading today’s -10.8% move in SMILEDIRECTCLUB INC. $SDC

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Quantchabot has detected a promising Bear Call Spread trade opportunity for SMILEDIRECTCLUB INC. (SDC) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SDC was recently trading at $13.68 and has an implied volatility of 97.16% for this period. Based on an analysis of the options available for SDC expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.00-$13.68 at expiration. In this scenario, the average linear return for the trade would be 62.65%.

Big -10.76% Change: After closing the last trading session at $15.33, SMILEDIRECTCLUB INC. opened today at $14.58 and has reached a low of $13.37.

Trade approach: A movement as big as -10.76% is a significantly bearish indicator, so this trade is designed to be profitable if SDC maintains its current direction and does not revert back to pricing on the bullish side of $13.68 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 bearish strategy, the trade would be profitable if SMILEDIRECTCLUB INC. closes at or below $13.70 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 50.34% 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 NEWELL BRANDS INC $NWL

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

NWL was recently trading at $20.58 and has an implied volatility of 31.65% for this period. Based on an analysis of the options available for NWL expiring on 20-Mar-2020, there is a 30.31% likelihood that the underlying will close within the analyzed range of $20.58-$22.53 at expiration. In this scenario, the average linear return for the trade would be 38.76%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, NEWELL BRANDS 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 NWL 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 NEWELL BRANDS INC closed at or above $20.40 on 20-Mar-2020. Based on our analysis, there is a 49.67% 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 LINDE PLC $LIN

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

LIN was recently trading at $221.76 and has an implied volatility of 17.88% for this period. Based on an analysis of the options available for LIN expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $222.40-$240.69 at expiration. In this scenario, the average linear return for the trade would be 27.48%.

52 week high: LINDE PLC recently reached a new 52-week high at $222.10. LIN had traded in the range $165.93-$218.84 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 LIN maintains its current direction and does not revert back to pricing on the bearish side of $221.76 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 LINDE PLC closes at or above $222.05 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.79% 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 9.3% move in GODADDY INC $GDDY

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

GDDY was recently trading at $77.44 and has an implied volatility of 28.28% for this period. Based on an analysis of the options available for GDDY expiring on 20-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $77.56-$84.46 at expiration. In this scenario, the average linear return for the trade would be 38.15%.

Big 9.27% Change: After closing the last trading session at $70.87, GODADDY INC opened today at $75.13 and has reached a high of $78.52.

Trade approach: A movement as big as 9.27% is a significantly bullish indicator, so this trade is designed to be profitable if GDDY maintains its current direction and does not revert back to pricing on the bearish side of $77.44 on 20-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 bullish strategy, the trade would be profitable if GODADDY INC closes at or above $77.55 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 50.09% 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 GODADDY INC $GDDY

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Call Spread trade opportunity for GODADDY INC (GDDY) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GDDY was recently trading at $77.44 and has an implied volatility of 28.28% for this period. Based on an analysis of the options available for GDDY expiring on 20-Mar-2020, there is a 33.68% likelihood that the underlying will close within the analyzed range of $71.23-$77.49 at expiration. In this scenario, the average linear return for the trade would be 92.74%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, GODADDY 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 GDDY on StockTwits appears to be significantly 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 GODADDY INC closed at or below $77.70 on 20-Mar-2020. Based on our analysis, there is a 50.81% 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: BP PRUDHOE BAY $BPT trading at a 12.57% 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 $7.33 and has an implied volatility of 36.62% 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 $4.32-$12.59 at expiration. In this scenario, the average linear return for the trade would be 55.89%.

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 $0.17 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 $0.93 per share over the underlying price of $7.33 for a 12.69% 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 NEXTERA ENERGY $NEE

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

NEE was recently trading at $277.07 and has an implied volatility of 14.17% for this period. Based on an analysis of the options available for NEE expiring on 20-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $277.52-$291.87 at expiration. In this scenario, the average linear return for the trade would be 59.56%.

52 week high: NEXTERA ENERGY recently reached a new 52-week high at $277.45. NEE had traded in the range $182.43-$273.99 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 NEE maintains its current direction and does not revert back to pricing on the bearish side of $277.07 on 20-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 bullish strategy, the trade would be profitable if NEXTERA ENERGY closes at or above $276.10 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 54.04% 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.

Big Loser Alert: Trading today’s -13.1% move in AGNICO EAGLE MINES LIMITED $AEM

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Quantchabot has detected a promising Bear Call Spread trade opportunity for AGNICO EAGLE MINES LIMITED (AEM) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AEM was recently trading at $51.37 and has an implied volatility of 31.05% for this period. Based on an analysis of the options available for AEM expiring on 20-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $46.56-$51.25 at expiration. In this scenario, the average linear return for the trade would be 49.75%.

Big -13.10% Change: After closing the last trading session at $59.11, AGNICO EAGLE MINES LIMITED opened today at $52.20 and has reached a low of $50.74.

Trade approach: A movement as big as -13.10% is a significantly bearish indicator, so this trade is designed to be profitable if AEM maintains its current direction and does not revert back to pricing on the bullish side of $51.37 on 20-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 AGNICO EAGLE MINES LIMITED closes at or below $51.79 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 54.34% 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.