Synthetic Long Discount Alert: SORRENTO THERAPEUTICS INC. C $SRNE trading at a 10.52% discount for the 21-Jan-2022 expiration

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

SRNE was recently trading at $17.88 and has an implied volatility of 142.73% for this period. Based on an analysis of the options available for SRNE expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.23-$100.22 at expiration. In this scenario, the average linear return for the trade would be 80.94%.

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 long call position is opened at a strike of $17.00, which is already $0.88 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 $1.00 per share. The final position can be considered as having a discount of $1.88 per share over the underlying price of $17.88 for a 10.52% 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: YPF SOCIEDAD ANONIMA $YPF returning up to 22.95% through 15-Jan-2021

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Quantchabot has detected a promising Covered Call trade opportunity for YPF SOCIEDAD ANONIMA (YPF) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

YPF was recently trading at $6.08 and has an implied volatility of 84.93% for this period. Based on an analysis of the options available for YPF expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.48-$10.62 at expiration. In this scenario, the average linear return for the trade would be 10.01%.

Moneyness: These options are currently 1.23% in the money and there is a 50.98% likelihood that these options will be exercised before or at expiration.

Most upside: If YPF SOCIEDAD ANONIMA closes at or above $6.00, this trade could return up to 22.95%. Based on our analysis, there is a 50.97% 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 34.65% chance the underlying will close at or below its breakeven price of $4.88, 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: CO-DIAGNOSTICS INC. COMMON STOCK $CODX trading at a 10.22% discount for the 21-Jan-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for CO-DIAGNOSTICS INC. COMMON STOCK (CODX) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CODX was recently trading at $23.95 and has an implied volatility of 156.77% for this period. Based on an analysis of the options available for CODX expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.66-$158.94 at expiration. In this scenario, the average linear return for the trade would be 85.82%.

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 $25.00, which is already $1.05 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 $3.50 per share. The final position can be considered as having a discount of $2.45 per share over the underlying price of $23.95 for a 10.22% 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: YAMANA GOLD $AUY returning up to 30.35% through 15-Jan-2021

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Quantchabot has detected a promising Covered Call trade opportunity for YAMANA GOLD (AUY) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AUY was recently trading at $6.02 and has an implied volatility of 60.75% for this period. Based on an analysis of the options available for AUY expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $4.04-$8.98 at expiration. In this scenario, the average linear return for the trade would be 10.06%.

Moneyness: These options are currently 16.18% out of the money and there is a 36.14% likelihood that these options will be exercised before or at expiration.

Most upside: If YAMANA GOLD closes at or above $7.00, this trade could return up to 30.35%. Based on our analysis, there is a 35.37% 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 38.62% chance the underlying will close at or below its breakeven price of $5.37, 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.

Covered Call Alert: TAPESTRY INC $TPR returning up to 28.77% through 15-Jan-2021

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Quantchabot has detected a promising Covered Call trade opportunity for TAPESTRY INC (TPR) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TPR was recently trading at $15.54 and has an implied volatility of 68.02% for this period. Based on an analysis of the options available for TPR expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $9.95-$24.32 at expiration. In this scenario, the average linear return for the trade would be 10.10%.

Moneyness: These options are currently 12.65% out of the money and there is a 39.51% likelihood that these options will be exercised before or at expiration.

Most upside: If TAPESTRY INC closes at or above $24.32, this trade could return up to 28.77%. Based on our analysis, there is a 15.87% 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 38.11% chance the underlying will close at or below its breakeven price of $13.59, 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.

Covered Call Alert: KINROSS GOLD $KGC returning up to 30.55% through 15-Jan-2021

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Quantchabot has detected a promising Covered Call trade opportunity for KINROSS GOLD (KGC) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KGC was recently trading at $8.62 and has an implied volatility of 63.12% for this period. Based on an analysis of the options available for KGC expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $5.70-$13.07 at expiration. In this scenario, the average linear return for the trade would be 10.18%.

Moneyness: These options are currently 15.94% out of the money and there is a 36.68% likelihood that these options will be exercised before or at expiration.

Most upside: If KINROSS GOLD closes at or above $10.00, this trade could return up to 30.55%. Based on our analysis, there is a 36.16% 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 38.63% chance the underlying will close at or below its breakeven price of $7.66, 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.

Big Loser Alert: Trading today’s -8.3% move in OPKO HEALTH $OPK

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for OPKO HEALTH (OPK) for the 25-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

OPK was recently trading at $5.00 and has an implied volatility of 90.10% for this period. Based on an analysis of the options available for OPK expiring on 25-Sep-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.64-$5.01 at expiration. In this scenario, the average linear return for the trade would be 37.80%.

Big -8.33% Change: After closing the last trading session at $5.46, OPKO HEALTH opened today at $5.38 and has reached a low of $4.96.

Trade approach: A movement as big as -8.33% is a significantly bearish indicator, so this trade is designed to be profitable if OPK maintains its current direction and does not revert back to pricing on the bullish side of $5.00 on 25-Sep-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 OPKO HEALTH closes at or below $5.04 on 25-Sep-2020. Based on our risk-neutral analysis, there is a 50.85% 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 CORNING $GLW

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CORNING (GLW) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GLW was recently trading at $32.45 and has an implied volatility of 33.53% for this period. Based on an analysis of the options available for GLW expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $32.23-$37.19 at expiration. In this scenario, the average linear return for the trade would be 68.63%.

52 week high: CORNING recently reached a new 52-week high at $32.62. GLW had traded in the range $17.44-$31.99 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 GLW maintains its current direction and does not revert back to pricing on the bearish side of $32.45 on 16-Oct-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 CORNING closes at or above $32.14 on 16-Oct-2020. Based on our risk-neutral 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.

Big Gainer Alert: Trading today’s 9.7% move in HD SUPPLY HOLDINGS INC. COMMO $HDS

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Quantchabot has detected a promising Bull Put Spread trade opportunity for HD SUPPLY HOLDINGS INC. COMMO (HDS) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HDS was recently trading at $41.94 and has an implied volatility of 35.40% for this period. Based on an analysis of the options available for HDS expiring on 21-Aug-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $41.94-$44.52 at expiration. In this scenario, the average linear return for the trade would be 34.73%.

Big 9.68% Change: After closing the last trading session at $38.24, HD SUPPLY HOLDINGS INC. COMMO opened today at $41.44 and has reached a high of $43.37.

Trade approach: A movement as big as 9.68% is a significantly bullish indicator, so this trade is designed to be profitable if HDS maintains its current direction and does not revert back to pricing on the bearish side of $41.94 on 21-Aug-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 HD SUPPLY HOLDINGS INC. COMMO closes at or above $41.80 on 21-Aug-2020. Based on our risk-neutral analysis, there is a 52.27% 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 ROCKWELL AUTOMATION $ROK

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ROCKWELL AUTOMATION (ROK) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ROK was recently trading at $234.30 and has an implied volatility of 30.22% for this period. Based on an analysis of the options available for ROK expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $233.35-$265.45 at expiration. In this scenario, the average linear return for the trade would be 44.84%.

52 week high: ROCKWELL AUTOMATION recently reached a new 52-week high at $238.49. ROK had traded in the range $115.38-$230.93 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 ROK maintains its current direction and does not revert back to pricing on the bearish side of $234.30 on 16-Oct-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 ROCKWELL AUTOMATION closes at or above $233.20 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 50.20% 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.