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

IIPR was recently trading at $91.20 and has an implied volatility of 46.77% for this period. Based on an analysis of the options available for IIPR expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $91.30-$103.46 at expiration. In this scenario, the average linear return for the trade would be 75.48%.

Big 7.33% Change: After closing the last trading session at $84.97, INNOVATIVE INDUSTRIAL PROPERTIES INC opened today at $86.36 and has reached a high of $91.87.

Trade approach: A movement as big as 7.33% is a significantly bullish indicator, so this trade is designed to be profitable if IIPR maintains its current direction and does not revert back to pricing on the bearish side of $91.20 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 bullish strategy, the trade would be profitable if INNOVATIVE INDUSTRIAL PROPERTIES INC closes at or above $90.30 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 53.52% 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.

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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 $9.63 and has an implied volatility of 5.34% 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 $7.60-$13.14 at expiration. In this scenario, the average linear return for the trade would be 70.94%.

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 $0.38 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 $1.38 per share. The final position can be considered as having a discount of $1.01 per share over the underlying price of $9.63 for a 10.44% 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.

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Quantchabot has detected a promising Bull Put Spread trade opportunity for FRANCO-NEVADA (FNV) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FNV was recently trading at $110.21 and has an implied volatility of 20.92% for this period. Based on an analysis of the options available for FNV expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $110.33-$116.51 at expiration. In this scenario, the average linear return for the trade would be 38.89%.

52 week high: FRANCO-NEVADA recently reached a new 52-week high at $110.55. FNV had traded in the range $69.16-$110.46 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 FNV maintains its current direction and does not revert back to pricing on the bearish side of $110.21 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 bullish strategy, the trade would be profitable if FRANCO-NEVADA closes at or above $108.60 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 61.44% 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.

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Quantchabot has detected a promising Covered Call trade opportunity for FARFETCH LTD (FTCH) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FTCH was recently trading at $11.27 and has an implied volatility of 66.05% for this period. Based on an analysis of the options available for FTCH expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $7.22-$17.89 at expiration. In this scenario, the average linear return for the trade would be 11.05%.

Moneyness: These options are currently 6.52% out of the money and there is a 45.22% likelihood that these options will be exercised before or at expiration.

Most upside: If FARFETCH LTD closes at or above $12.00, this trade could return up to 25.39%. Based on our analysis, there is a 45.24% 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 35.22% chance the underlying will close at or below its breakeven price of $9.57, 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.

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

CVM was recently trading at $13.75 and has an implied volatility of 101.61% for this period. Based on an analysis of the options available for CVM expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.29-$59.57 at expiration. In this scenario, the average linear return for the trade would be 81.19%.

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 $12.50, which is already $1.25 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 $1.65 per share over the underlying price of $13.75 for a 12.00% 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.

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

INSP was recently trading at $72.82 and has an implied volatility of 48.77% for this period. Based on an analysis of the options available for INSP expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $64.58-$72.90 at expiration. In this scenario, the average linear return for the trade would be 32.09%.

Big -7.31% Change: After closing the last trading session at $78.56, INSPIRE MEDICAL SYSTEMS INC opened today at $76.65 and has reached a low of $71.17.

Trade approach: A movement as big as -7.31% is a significantly bearish indicator, so this trade is designed to be profitable if INSP maintains its current direction and does not revert back to pricing on the bullish side of $72.82 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 INSPIRE MEDICAL SYSTEMS INC closes at or below $73.45 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 52.47% 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.

Quantcha now offering unlimited commission-free options trading.

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

DHI was recently trading at $60.98 and has an implied volatility of 24.01% for this period. Based on an analysis of the options available for DHI expiring on 20-Mar-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $60.95-$66.54 at expiration. In this scenario, the average linear return for the trade would be 49.45%.

52 week high: DR HORTON recently reached a new 52-week high at $61.24. DHI had traded in the range $34.96-$59.86 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 DHI maintains its current direction and does not revert back to pricing on the bearish side of $60.98 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 DR HORTON closes at or above $60.67 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 52.10% 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.

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

REV was recently trading at $21.87 and has an implied volatility of 29.38% for this period. Based on an analysis of the options available for REV expiring on 21-Aug-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $13.37-$36.51 at expiration. In this scenario, the average linear return for the trade would be 82.37%.

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 $22.50, which is already $0.63 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 $4.75 per share. The final position can be considered as having a discount of $4.12 per share over the underlying price of $21.87 for a 18.84% 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.

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Quantchabot has detected a promising Covered Call trade opportunity for ROKU INC. CLASS A COMMON STOCK (ROKU) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ROKU was recently trading at $126.90 and has an implied volatility of 65.23% for this period. Based on an analysis of the options available for ROKU expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $81.92-$199.93 at expiration. In this scenario, the average linear return for the trade would be 11.44%.

Moneyness: These options are currently 6.40% out of the money and there is a 45.20% likelihood that these options will be exercised before or at expiration.

Most upside: If ROKU INC. CLASS A COMMON STOCK closes at or above $135.00, this trade could return up to 25.60%. Based on our analysis, there is a 45.24% 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 34.78% chance the underlying will close at or below its breakeven price of $107.48, 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.

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Long Risk Reversal trade opportunity for ACCELERON PHARMA INC. COMMON S (XLRN) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

XLRN was recently trading at $79.94 and has an implied volatility of 67.04% for this period. Based on an analysis of the options available for XLRN expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $80.02-$95.85 at expiration. In this scenario, the average linear return for the trade would be 40.62%.

Big 51.19% Change: After closing the last trading session at $52.87, ACCELERON PHARMA INC. COMMON S opened today at $78.74 and has reached a high of $82.00.

Trade approach: A movement as big as 51.19% is a significantly bullish indicator, so this trade is designed to be profitable if XLRN maintains its current direction and does not revert back to pricing on the bearish side of $79.94 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 bullish strategy, the trade would be profitable if ACCELERON PHARMA INC. COMMON S closes at or above $79.40 on 21-Feb-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.