Big Loser Alert: Trading today’s -10.1% move in MICROSOFT $MSFT

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

MSFT was recently trading at $142.85 and has an implied volatility of 67.33% for this period. Based on an analysis of the options available for MSFT expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $116.19-$142.94 at expiration. In this scenario, the average linear return for the trade would be 77.37%.

Big -10.06% Change: After closing the last trading session at $158.83, MICROSOFT opened today at $140.00 and has reached a low of $137.49.

Trade approach: A movement as big as -10.06% is a significantly bearish indicator, so this trade is designed to be profitable if MSFT maintains its current direction and does not revert back to pricing on the bullish side of $142.85 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 MICROSOFT closes at or below $144.45 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 52.03% 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 Call 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 $179.39 and has an implied volatility of 65.40% 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 $144.48-$179.53 at expiration. In this scenario, the average linear return for the trade would be 39.06%.

52 week low: BERKSHIRE HATHAWAY recently reached a new 52-week low at $173.62. BRK.B had traded in the range $175.00-$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 $179.39 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 $179.90 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 50.38% 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 -10.1% move in APPLE $AAPL

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Quantchabot has detected a promising Bear Put Spread trade opportunity for APPLE (AAPL) for the 1-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AAPL was recently trading at $249.92 and has an implied volatility of 73.54% for this period. Based on an analysis of the options available for AAPL expiring on 1-May-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $192.49-$250.14 at expiration. In this scenario, the average linear return for the trade would be 86.80%.

Big -10.09% Change: After closing the last trading session at $277.97, APPLE opened today at $241.95 and has reached a low of $240.00.

Trade approach: A movement as big as -10.09% is a significantly bearish indicator, so this trade is designed to be profitable if AAPL maintains its current direction and does not revert back to pricing on the bullish side of $249.92 on 1-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 bearish strategy, the trade would be profitable if APPLE closes at or below $250.60 on 1-May-2020. Based on our risk-neutral analysis, there is a 50.28% 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 GOLD MINERS BUL $NUGT

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Quantchabot has detected a promising Covered Call trade opportunity for DIREXION DAILY GOLD MINERS BUL (NUGT) for the 27-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NUGT was recently trading at $6.07 and has an implied volatility of 545.91% for this period. Based on an analysis of the options available for NUGT expiring on 27-Mar-2020, there is a 34.04% likelihood that the underlying will close within the analyzed range of $6.09-$15.60 at expiration. In this scenario, the average linear return for the trade would be 63.80%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DIREXION DAILY GOLD MINERS BUL 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 NUGT 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 DIREXION DAILY GOLD MINERS BUL closed at or above $5.90 on 27-Mar-2020. Based on our analysis, there is a 51.21% 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 AMAZON.COM $AMZN

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

AMZN was recently trading at $1,688.63 and has an implied volatility of 57.18% for this period. Based on an analysis of the options available for AMZN expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $1,423.81-$1,689.69 at expiration. In this scenario, the average linear return for the trade would be 90.69%.

52 week low: AMAZON.COM recently reached a new 52-week low at $1,626.03. AMZN had traded in the range $1,672.00-$2,185.95 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 AMZN maintains its current direction and does not revert back to pricing on the bullish side of $1,688.63 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 AMAZON.COM closes at or below $1,696.35 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.92% 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.

Covered Call Alert: NEW ORIENTAL $EDU returning up to 23.74% through 17-Jul-2020

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

EDU was recently trading at $122.08 and has an implied volatility of 51.16% for this period. Based on an analysis of the options available for EDU expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $90.89-$164.80 at expiration. In this scenario, the average linear return for the trade would be 14.73%.

Moneyness: These options are currently 12.29% out of the money and there is a 47.09% likelihood that these options will be exercised before or at expiration.

Most upside: If NEW ORIENTAL closes at or above $125.00, this trade could return up to 23.74%. Based on our analysis, there is a 47.17% 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 25.95% chance the underlying will close at or below its breakeven price of $101.02, 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: NV5 GLOBAL INC. COMMON STOC $NVEE trading at a 5.65% discount for the 17-Apr-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for NV5 GLOBAL INC. COMMON STOC (NVEE) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NVEE was recently trading at $58.50 and has an implied volatility of 40.09% for this period. Based on an analysis of the options available for NVEE expiring on 17-Apr-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $35.11-$97.59 at expiration. In this scenario, the average linear return for the trade would be 97.26%.

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 $60.00, which is already $1.50 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 $15.00 per share. The final position can be considered as having a discount of $13.50 per share over the underlying price of $58.50 for a 23.08% 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.

Synthetic Long Discount Alert: ANNALY CAPITAL $NLY trading at a 10.62% 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 $6.55 and has an implied volatility of 34.35% 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 $3.22-$13.69 at expiration. In this scenario, the average linear return for the trade would be 53.50%.

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 $7.00, which is already $0.46 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 $0.70 per share over the underlying price of $6.55 for a 10.62% 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: VIRNETX HOLDING $VHC trading at a 10.40% discount for the 20-Mar-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for VIRNETX HOLDING (VHC) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VHC was recently trading at $6.90 and has an implied volatility of 53.83% for this period. Based on an analysis of the options available for VHC expiring on 20-Mar-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $5.38-$8.85 at expiration. In this scenario, the average linear return for the trade would be 46.09%.

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 $7.00, which is already $0.10 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 $0.80 per share. The final position can be considered as having a discount of $0.70 per share over the underlying price of $6.90 for a 10.14% 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: WALT DISNEY $DIS returning up to 13.88% through 19-Jun-2020

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Quantchabot has detected a promising Covered Call trade opportunity for WALT DISNEY (DIS) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DIS was recently trading at $97.07 and has an implied volatility of 80.52% for this period. Based on an analysis of the options available for DIS expiring on 19-Jun-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $66.07-$143.21 at expiration. In this scenario, the average linear return for the trade would be 11.70%.

Moneyness: These options are currently 17.58% in the money and there is a 65.38% likelihood that these options will be exercised before or at expiration.

Most upside: If WALT DISNEY closes at or above $80.00, this trade could return up to 13.88%. Based on our analysis, there is a 69.33% 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 20.01% chance the underlying will close at or below its breakeven price of $70.25, 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.