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 DEERE $DE

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for DEERE (DE) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DE was recently trading at $372.90 and has an implied volatility of 35.73% for this period. Based on an analysis of the options available for DE expiring on 19-Jan-2024, there is a 30.94% likelihood that the underlying will close within the analyzed range of $243.57-$372.70 at expiration. In this scenario, the average linear return for the trade would be 111.14%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DEERE 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 DE 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 DEERE closed at or below $459.10 on 19-Jan-2024. Based on our analysis, there is a 64.45% 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.

StockTwits Trending Alert: Trading recent interest in LULULEMON ATHLETICA $LULU

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Quantchabot has detected a promising Covered Put trade opportunity for LULULEMON ATHLETICA (LULU) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LULU was recently trading at $280.72 and has an implied volatility of 46.07% for this period. Based on an analysis of the options available for LULU expiring on 19-Jan-2024, there is a 31.71% likelihood that the underlying will close within the analyzed range of $160.39-$280.81 at expiration. In this scenario, the average linear return for the trade would be 289.65%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, LULULEMON ATHLETICA 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 LULU 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 LULULEMON ATHLETICA closed at or below $415.67 on 19-Jan-2024. Based on our analysis, there is a 72.47% 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.

StockTwits Trending Alert: Trading recent interest in FOOT LOCKER $FL

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Quantchabot has detected a promising Covered Put trade opportunity for FOOT LOCKER (FL) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FL was recently trading at $30.59 and has an implied volatility of 53.40% for this period. Based on an analysis of the options available for FL expiring on 19-Jan-2024, there is a 37.56% likelihood that the underlying will close within the analyzed range of $14.44-$30.59 at expiration. In this scenario, the average linear return for the trade would be 120.21%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, FOOT LOCKER 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 FL on StockTwits appears to be significantly 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 FOOT LOCKER closed at or below $41.68 on 19-Jan-2024. Based on our analysis, there is a 70.32% 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: VERTICAL AEROSPACE LTD $EVTL trading at a 10.46% discount for the 21-Oct-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for VERTICAL AEROSPACE LTD (EVTL) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EVTL was recently trading at $6.31 and has an implied volatility of 95.19% for this period. Based on an analysis of the options available for EVTL expiring on 21-Oct-2022, there is a 68.29% likelihood that the underlying will close within the analyzed range of $3.40-$11.83 at expiration. In this scenario, the average linear return for the trade would be 48.75%.

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 $7.50, which is already $1.19 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 $1.85 per share. The final position can be considered as having a discount of $0.66 per share over the underlying price of $6.31 for a 10.46% 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: VALE $VALE trading at a 10.22% discount for the 20-Dec-2024 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for VALE (VALE) for the 20-Dec-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VALE was recently trading at $15.65 and has an implied volatility of 44.11% for this period. Based on an analysis of the options available for VALE expiring on 20-Dec-2024, there is a 68.27% likelihood that the underlying will close within the analyzed range of $8.14-$33.72 at expiration. In this scenario, the average linear return for the trade would be 65.92%.

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 $15.00, which is already $0.65 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 $0.95 per share. The final position can be considered as having a discount of $1.60 per share over the underlying price of $15.65 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.

52-Week Low Alert: Trading today’s movement in TRANSUNION $TRU

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Quantchabot has detected a promising Bear Call Spread trade opportunity for TRANSUNION (TRU) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TRU was recently trading at $80.09 and has an implied volatility of 33.23% for this period. Based on an analysis of the options available for TRU expiring on 17-Jun-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $72.68-$80.03 at expiration. In this scenario, the average linear return for the trade would be 33.32%.

52 week low: TRANSUNION recently reached a new 52-week low at $79.95. TRU had traded in the range $80.31-$125.35 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 TRU maintains its current direction and does not revert back to pricing on the bullish side of $80.09 on 17-Jun-2022. 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 TRANSUNION closes at or below $81.25 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 56.25% 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.

Big Loser Alert: Trading today’s -8.1% move in WHIRLPOOL $WHR

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Quantchabot has detected a promising Bear Call Spread trade opportunity for WHIRLPOOL (WHR) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WHR was recently trading at $171.57 and has an implied volatility of 46.47% for this period. Based on an analysis of the options available for WHR expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $144.45-$169.95 at expiration. In this scenario, the average linear return for the trade would be 24.46%.

Big -8.07% Change: After closing the last trading session at $186.63, WHIRLPOOL opened today at $179.05 and has reached a low of $171.04.

Trade approach: A movement as big as -8.07% is a significantly bearish indicator, so this trade is designed to be profitable if WHR maintains its current direction and does not revert back to pricing on the bullish side of $171.57 on 1-Jul-2022. 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 WHIRLPOOL closes at or below $170.00 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 50.08% 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 -8.3% move in ETSY INC. COMMON STOCK $ETSY

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Quantchabot has detected a promising Bear Call Spread trade opportunity for ETSY INC. COMMON STOCK (ETSY) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ETSY was recently trading at $80.72 and has an implied volatility of 79.51% for this period. Based on an analysis of the options available for ETSY expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $61.17-$80.78 at expiration. In this scenario, the average linear return for the trade would be 28.57%.

Big -8.34% Change: After closing the last trading session at $88.06, ETSY INC. COMMON STOCK opened today at $85.05 and has reached a low of $80.06.

Trade approach: A movement as big as -8.34% is a significantly bearish indicator, so this trade is designed to be profitable if ETSY maintains its current direction and does not revert back to pricing on the bullish side of $80.72 on 1-Jul-2022. 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 ETSY INC. COMMON STOCK closes at or below $81.02 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 50.43% 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 ROCKWELL AUTOMATION $ROK

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Quantchabot has detected a promising Bear Call Spread trade opportunity for ROCKWELL AUTOMATION (ROK) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ROK was recently trading at $196.66 and has an implied volatility of 36.66% for this period. Based on an analysis of the options available for ROK expiring on 15-Jul-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $169.95-$196.85 at expiration. In this scenario, the average linear return for the trade would be 31.37%.

52 week low: ROCKWELL AUTOMATION recently reached a new 52-week low at $195.22. ROK had traded in the range $197.10-$354.99 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 ROK maintains its current direction and does not revert back to pricing on the bullish side of $196.66 on 15-Jul-2022. 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 ROCKWELL AUTOMATION closes at or below $197.40 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.76% 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 CHEWY INC $CHWY

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Quantchabot has detected a promising Bear Call Spread trade opportunity for CHEWY INC (CHWY) for the 27-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CHWY was recently trading at $24.86 and has an implied volatility of 101.57% for this period. Based on an analysis of the options available for CHWY expiring on 27-May-2022, there is a 34.35% likelihood that the underlying will close within the analyzed range of $21.08-$24.86 at expiration. In this scenario, the average linear return for the trade would be 25.50%.

Big -10.09% Change: After closing the last trading session at $27.65, CHEWY INC opened today at $26.86 and has reached a low of $24.61.

Trade approach: A movement as big as -10.09% is a significantly bearish indicator, so this trade is designed to be profitable if CHWY maintains its current direction and does not revert back to pricing on the bullish side of $24.86 on 27-May-2022. 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 CHEWY INC closes at or below $24.87 on 27-May-2022. Based on our risk-neutral analysis, there is a 50.06% 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.