All posts by Automated Ideas

Ideas posted by this account are automatically generated based on market analysis. Please be aware that they are not vetted and the publishing process is completely automated. If you have any feedback about the ideas posted, please email hello@quantcha.com.

StockTwits Trending Alert: Trading recent interest in GW PHARMACEUTICALS PLC AMERICA $GWPH

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

GWPH was recently trading at $111.07 and has an implied volatility of 49.47% for this period. Based on an analysis of the options available for GWPH expiring on 20-Mar-2020, there is a 34.25% likelihood that the underlying will close within the analyzed range of $98.28-$111.23 at expiration. In this scenario, the average linear return for the trade would be 40.46%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, GW PHARMACEUTICALS PLC AMERICA 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 GWPH 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 GW PHARMACEUTICALS PLC AMERICA closed at or below $111.95 on 20-Mar-2020. Based on our analysis, there is a 52.21% 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.

StockTwits Trending Alert: Trading recent interest in UNITED PARCEL SERVICE $UPS

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Quantchabot has detected a promising Bull Put Spread trade opportunity for UNITED PARCEL SERVICE (UPS) for the 6-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

UPS was recently trading at $94.62 and has an implied volatility of 37.79% for this period. Based on an analysis of the options available for UPS expiring on 6-Mar-2020, there is a 33.63% likelihood that the underlying will close within the analyzed range of $94.73-$100.41 at expiration. In this scenario, the average linear return for the trade would be 52.39%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, UNITED PARCEL SERVICE 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 UPS on StockTwits appears to be significantly 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 UNITED PARCEL SERVICE closed at or above $94.51 on 6-Mar-2020. Based on our analysis, there is a 51.07% 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 SALESFORCE.COM $CRM

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Quantchabot has detected a promising Bear Put Spread trade opportunity for SALESFORCE.COM (CRM) for the 6-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CRM was recently trading at $179.19 and has an implied volatility of 36.76% for this period. Based on an analysis of the options available for CRM expiring on 6-Mar-2020, there is a 33.86% likelihood that the underlying will close within the analyzed range of $168.89-$179.19 at expiration. In this scenario, the average linear return for the trade would be 85.94%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SALESFORCE.COM 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 CRM 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 SALESFORCE.COM closed at or below $179.90 on 6-Mar-2020. Based on our analysis, there is a 52.39% 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 ORACLE CORP $ORCL

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Quantchabot has detected a promising Bull Call Spread trade opportunity for ORACLE CORP (ORCL) for the 6-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ORCL was recently trading at $52.60 and has an implied volatility of 31.05% for this period. Based on an analysis of the options available for ORCL expiring on 6-Mar-2020, there is a 34.24% likelihood that the underlying will close within the analyzed range of $52.62-$55.25 at expiration. In this scenario, the average linear return for the trade would be 54.15%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ORACLE 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 ORCL on StockTwits appears to be significantly 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 ORACLE CORP closed at or above $52.45 on 6-Mar-2020. Based on our analysis, there is a 52.67% 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.

StockTwits Trending Alert: Trading recent interest in SPDR S&P 500 $SPY

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Quantchabot has detected a promising Bear Put Spread trade opportunity for SPDR S&P 500 (SPY) for the 6-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SPY was recently trading at $316.40 and has an implied volatility of 27.77% for this period. Based on an analysis of the options available for SPY expiring on 6-Mar-2020, there is a 33.71% likelihood that the underlying will close within the analyzed range of $302.90-$316.39 at expiration. In this scenario, the average linear return for the trade would be 129.61%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SPDR S&P 500 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 SPY 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 SPDR S&P 500 closed at or below $316.45 on 6-Mar-2020. Based on our analysis, there is a 49.77% 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: TILRAY INC. CLASS 2 COMMON STOCK $TLRY trading at a 11.87% discount for the 15-Jan-2021 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for TILRAY INC. CLASS 2 COMMON STOCK (TLRY) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TLRY was recently trading at $16.68 and has an implied volatility of 55.14% for this period. Based on an analysis of the options available for TLRY expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $7.40-$38.69 at expiration. In this scenario, the average linear return for the trade would be 55.11%.

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 $17.50, which is already $0.82 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 $2.80 per share. The final position can be considered as having a discount of $1.98 per share over the underlying price of $16.68 for a 11.87% 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 REGENERON PHARMACEUTICALS $REGN

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Quantchabot has detected a promising Bull Put Spread trade opportunity for REGENERON PHARMACEUTICALS (REGN) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

REGN was recently trading at $448.57 and has an implied volatility of 40.51% for this period. Based on an analysis of the options available for REGN expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $449.60-$518.96 at expiration. In this scenario, the average linear return for the trade would be 58.33%.

52 week high: REGENERON PHARMACEUTICALS recently reached a new 52-week high at $455.23. REGN had traded in the range $271.37-$442.00 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 REGN maintains its current direction and does not revert back to pricing on the bearish side of $448.57 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 REGENERON PHARMACEUTICALS closes at or above $448.30 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.80% 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 -11.6% move in TOLL BROTHERS $TOL

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

TOL was recently trading at $39.15 and has an implied volatility of 36.28% for this period. Based on an analysis of the options available for TOL expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $34.62-$39.24 at expiration. In this scenario, the average linear return for the trade would be 39.53%.

Big -11.61% Change: After closing the last trading session at $44.29, TOLL BROTHERS opened today at $39.59 and has reached a low of $39.08.

Trade approach: A movement as big as -11.61% is a significantly bearish indicator, so this trade is designed to be profitable if TOL maintains its current direction and does not revert back to pricing on the bullish side of $39.15 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 TOLL BROTHERS closes at or below $40.85 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 62.60% 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: THE TRADE DESK INC. CLASS A COMMON STOCK $TTD returning up to 24.15% through 17-Jul-2020

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

TTD was recently trading at $277.80 and has an implied volatility of 65.57% for this period. Based on an analysis of the options available for TTD expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $187.10-$417.85 at expiration. In this scenario, the average linear return for the trade would be 10.03%.

Moneyness: These options are currently 8.23% out of the money and there is a 43.15% likelihood that these options will be exercised before or at expiration.

Most upside: If THE TRADE DESK INC. CLASS A COMMON STOCK closes at or above $300.00, this trade could return up to 24.15%. Based on our analysis, there is a 43.04% 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 35.83% chance the underlying will close at or below its breakeven price of $241.65, 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.

52-Week Low Alert: Trading today’s movement in GENERAL MOTORS $GM

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

GM was recently trading at $32.25 and has an implied volatility of 32.90% for this period. Based on an analysis of the options available for GM expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.45-$31.94 at expiration. In this scenario, the average linear return for the trade would be 97.24%.

52 week low: GENERAL MOTORS recently reached a new 52-week low at $31.95. GM had traded in the range $32.79-$41.90 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 GM maintains its current direction and does not revert back to pricing on the bullish side of $32.25 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 GENERAL MOTORS closes at or below $32.06 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.25% 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.