Category Archives: Trade Ideas

52-Week Low Alert: Trading today’s movement in ABBOTT LABORATORIES $ABT

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Quantchabot has detected a promising Covered Put trade opportunity for ABBOTT LABORATORIES (ABT) for the 9-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ABT was recently trading at $66.08 and has an implied volatility of 62.29% for this period. Based on an analysis of the options available for ABT expiring on 9-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $57.57-$66.10 at expiration. In this scenario, the average linear return for the trade would be 11.84%.

52 week low: ABBOTT LABORATORIES recently reached a new 52-week low at $64.50. ABT had traded in the range $67.95-$92.45 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 ABT maintains its current direction and does not revert back to pricing on the bullish side of $66.08 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 ABBOTT LABORATORIES closes at or below $66.23 on 9-Apr-2020. Based on our risk-neutral analysis, there is a 50.56% 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 BANK OF AMERICA CORP $BAC

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Quantchabot has detected a promising Bull Call Spread trade opportunity for BANK OF AMERICA CORP (BAC) for the 3-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BAC was recently trading at $19.29 and has an implied volatility of 95.51% for this period. Based on an analysis of the options available for BAC expiring on 3-Apr-2020, there is a 34.20% likelihood that the underlying will close within the analyzed range of $19.29-$22.74 at expiration. In this scenario, the average linear return for the trade would be 62.67%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, BANK OF AMERICA CORP 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 BAC 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 BANK OF AMERICA CORP closed at or above $19.17 on 3-Apr-2020. Based on our analysis, there is a 51.52% 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.

52-Week Low Alert: Trading today’s movement in UNITEDHEALTH GROUP $UNH

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Quantchabot has detected a promising Bear Call Spread trade opportunity for UNITEDHEALTH GROUP (UNH) for the 9-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

UNH was recently trading at $205.18 and has an implied volatility of 64.59% for this period. Based on an analysis of the options available for UNH expiring on 9-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $178.41-$205.26 at expiration. In this scenario, the average linear return for the trade would be 64.11%.

52 week low: UNITEDHEALTH GROUP recently reached a new 52-week low at $199.00. UNH had traded in the range $200.19-$306.72 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 UNH maintains its current direction and does not revert back to pricing on the bullish side of $205.18 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 UNITEDHEALTH GROUP closes at or below $206.10 on 9-Apr-2020. Based on our risk-neutral analysis, there is a 51.16% 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 13.4% move in MASTERCARD $MA

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

MA was recently trading at $230.61 and has an implied volatility of 53.41% for this period. Based on an analysis of the options available for MA expiring on 24-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $230.39-$272.41 at expiration. In this scenario, the average linear return for the trade would be 29.94%.

Big 13.43% Change: After closing the last trading session at $203.30, MASTERCARD opened today at $215.92 and has reached a high of $231.29.

Trade approach: A movement as big as 13.43% is a significantly bullish indicator, so this trade is designed to be profitable if MA maintains its current direction and does not revert back to pricing on the bearish side of $230.61 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 MASTERCARD closes at or above $229.85 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 50.56% 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 INTEL $INTC

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

INTC was recently trading at $52.64 and has an implied volatility of 70.56% for this period. Based on an analysis of the options available for INTC expiring on 3-Apr-2020, there is a 34.08% likelihood that the underlying will close within the analyzed range of $46.74-$52.65 at expiration. In this scenario, the average linear return for the trade would be 65.88%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, INTEL 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 INTC 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 INTEL closed at or below $53.61 on 3-Apr-2020. Based on our analysis, there is a 56.01% 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 PROCTER & GAMBLE $PG

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

PG was recently trading at $99.21 and has an implied volatility of 59.87% for this period. Based on an analysis of the options available for PG expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $85.34-$99.27 at expiration. In this scenario, the average linear return for the trade would be 45.57%.

52 week low: PROCTER & GAMBLE recently reached a new 52-week low at $99.06. PG had traded in the range $101.00-$128.09 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 PG maintains its current direction and does not revert back to pricing on the bullish side of $99.21 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 PROCTER & GAMBLE closes at or below $100.20 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 52.45% 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 VISA $V

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Quantchabot has detected a promising Long Risk Reversal 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 $150.42 and has an implied volatility of 54.68% for this period. Based on an analysis of the options available for V expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $150.51-$174.31 at expiration. In this scenario, the average linear return for the trade would be 35.72%.

Big 10.81% Change: After closing the last trading session at $135.74, VISA opened today at $144.84 and has reached a high of $151.08.

Trade approach: A movement as big as 10.81% is a significantly bullish indicator, so this trade is designed to be profitable if V maintains its current direction and does not revert back to pricing on the bearish side of $150.42 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 VISA closes at or above $148.90 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 52.93% 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: ALPHA PRO TECH $APT trading at a 11.11% discount for the 21-Aug-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for ALPHA PRO TECH (APT) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

APT was recently trading at $11.18 and has an implied volatility of 96.84% for this period. Based on an analysis of the options available for APT expiring on 21-Aug-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $4.62-$27.34 at expiration. In this scenario, the average linear return for the trade would be 55.81%.

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 $10.00, which is already $1.18 in the money. An out-of-the-money put at the same strike is sold to finance the call, resulting in a net debit of $0.00 per share. The final position can be considered as having a discount of $1.18 per share over the underlying price of $11.18 for a 10.56% 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: CO-DIAGNOSTICS INC. COMMON STOCK $CODX trading at a 10.40% 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 $9.36 and has an implied volatility of 170.13% 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 $1.43-$61.95 at expiration. In this scenario, the average linear return for the trade would be 87.22%.

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 $9.00, which is already $0.36 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 $0.60 per share. The final position can be considered as having a discount of $0.96 per share over the underlying price of $9.36 for a 10.26% 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: AT&T $T trading at a 10.36% discount for the 21-Jan-2022 expiration

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

T was recently trading at $26.89 and has an implied volatility of 23.29% for this period. Based on an analysis of the options available for T expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $16.74-$44.67 at expiration. In this scenario, the average linear return for the trade would be 50.46%.

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 $28.00, which is already $1.11 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 $3.90 per share. The final position can be considered as having a discount of $2.79 per share over the underlying price of $26.89 for a 10.38% 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.