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 OLEMA PHARMACEUTICALS INC. COMMON STOCK $OLMA

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for OLEMA PHARMACEUTICALS INC. COMMON STOCK (OLMA) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

OLMA was recently trading at $8.97 and has an implied volatility of 159.71% for this period. Based on an analysis of the options available for OLMA expiring on 17-Dec-2021, there is a 34.21% likelihood that the underlying will close within the analyzed range of $8.97-$12.58 at expiration. In this scenario, the average linear return for the trade would be 90.95%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, OLEMA PHARMACEUTICALS INC. COMMON STOCK 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 OLMA 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 OLEMA PHARMACEUTICALS INC. COMMON STOCK closed at or above $8.80 on 17-Dec-2021. Based on our analysis, there is a 52.33% 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: MYOVANT SCIENCES LTD $MYOV returning up to 16.46% through 14-Apr-2022

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Quantchabot has detected a promising Covered Call trade opportunity for MYOVANT SCIENCES LTD (MYOV) for the 14-Apr-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MYOV was recently trading at $16.54 and has an implied volatility of 73.49% for this period. Based on an analysis of the options available for MYOV expiring on 14-Apr-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $10.60-$25.85 at expiration. In this scenario, the average linear return for the trade would be 10.08%.

Moneyness: These options are currently 9.39% in the money and there is a 57.94% likelihood that these options will be exercised before or at expiration.

Most upside: If MYOVANT SCIENCES LTD closes at or above $25.85, this trade could return up to 16.46%. 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 28.69% chance the underlying will close at or below its breakeven price of $12.88, 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.

Covered Call Alert: CHEMOCENTRYX $CCXI returning up to 45.26% through 20-May-2022

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Quantchabot has detected a promising Covered Call trade opportunity for CHEMOCENTRYX (CCXI) for the 20-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CCXI was recently trading at $37.52 and has an implied volatility of 91.83% for this period. Based on an analysis of the options available for CCXI expiring on 20-May-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $20.05-$70.33 at expiration. In this scenario, the average linear return for the trade would be 16.28%.

Moneyness: These options are currently 19.92% out of the money and there is a 38.53% likelihood that these options will be exercised before or at expiration.

Most upside: If CHEMOCENTRYX closes at or above $45.00, this trade could return up to 45.26%. Based on our analysis, there is a 38.66% 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 37.95% chance the underlying will close at or below its breakeven price of $30.98, 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.

StockTwits Trending Alert: Trading recent interest in FULGENT GENETICS INC. COMMON STOCK $FLGT

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Quantchabot has detected a promising Bear Call Spread trade opportunity for FULGENT GENETICS INC. COMMON STOCK (FLGT) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FLGT was recently trading at $86.06 and has an implied volatility of 70.68% for this period. Based on an analysis of the options available for FLGT expiring on 17-Dec-2021, there is a 34.35% likelihood that the underlying will close within the analyzed range of $74.10-$86.13 at expiration. In this scenario, the average linear return for the trade would be 42.97%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, FULGENT GENETICS INC. COMMON STOCK 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 FLGT 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 FULGENT GENETICS INC. COMMON STOCK closed at or below $88.05 on 17-Dec-2021. Based on our analysis, there is a 56.07% 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.

Big Gainer Alert: Trading today’s 7.1% move in REATA PHARMACEUTICALS INC. CLASS A COMMON STOCK $RETA

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for REATA PHARMACEUTICALS INC. CLASS A COMMON STOCK (RETA) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RETA was recently trading at $91.64 and has an implied volatility of 177.22% for this period. Based on an analysis of the options available for RETA expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $91.66-$209.43 at expiration. In this scenario, the average linear return for the trade would be 181.17%.

Big 7.06% Change: After closing the last trading session at $85.60, REATA PHARMACEUTICALS INC. CLASS A COMMON STOCK opened today at $87.85 and has reached a high of $91.81.

Trade approach: A movement as big as 7.06% is a significantly bullish indicator, so this trade is designed to be profitable if RETA maintains its current direction and does not revert back to pricing on the bearish side of $91.64 on 18-Feb-2022. 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 REATA PHARMACEUTICALS INC. CLASS A COMMON STOCK closes at or above $91.50 on 18-Feb-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.

Synthetic Long Discount Alert: ANNALY CAPITAL $NLY trading at a 10.54% discount for the 19-Jan-2024 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for ANNALY CAPITAL (NLY) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NLY was recently trading at $8.21 and has an implied volatility of 28.05% for this period. Based on an analysis of the options available for NLY expiring on 19-Jan-2024, there is a 68.27% likelihood that the underlying will close within the analyzed range of $5.49-$12.46 at expiration. In this scenario, the average linear return for the trade would be 54.50%.

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 long call position is opened at a strike of $7.00, which is already $1.21 in the money. An out-of-the-money put at the same strike is sold to finance the call, resulting in a net debit of $0.34 per share. The final position can be considered as having a discount of $0.86 per share over the underlying price of $8.21 for a 10.54% 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 ON SEMICONDUCTOR CORP $ON

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ON SEMICONDUCTOR CORP (ON) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ON was recently trading at $64.99 and has an implied volatility of 44.24% for this period. Based on an analysis of the options available for ON expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $65.00-$76.74 at expiration. In this scenario, the average linear return for the trade would be 58.73%.

52 week high: ON SEMICONDUCTOR CORP recently reached a new 52-week high at $65.05. ON had traded in the range $28.34-$64.04 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 ON maintains its current direction and does not revert back to pricing on the bearish side of $64.99 on 21-Jan-2022. 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 ON SEMICONDUCTOR CORP closes at or above $63.15 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 56.91% 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 12.8% move in BOX INC $BOX

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Quantchabot has detected a promising Bull Call Spread trade opportunity for BOX INC (BOX) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BOX was recently trading at $26.41 and has an implied volatility of 43.20% for this period. Based on an analysis of the options available for BOX expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $26.41-$31.06 at expiration. In this scenario, the average linear return for the trade would be 70.13%.

Big 12.82% Change: After closing the last trading session at $23.41, BOX INC opened today at $26.43 and has reached a high of $26.93.

Trade approach: A movement as big as 12.82% is a significantly bullish indicator, so this trade is designed to be profitable if BOX maintains its current direction and does not revert back to pricing on the bearish side of $26.41 on 21-Jan-2022. 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 BOX INC closes at or above $26.15 on 21-Jan-2022. 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.

52-Week High Alert: Trading today’s movement in HEWLETT-PACKARD $HPQ

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Quantchabot has detected a promising Bull Call Spread trade opportunity for HEWLETT-PACKARD (HPQ) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HPQ was recently trading at $36.46 and has an implied volatility of 32.15% for this period. Based on an analysis of the options available for HPQ expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $36.22-$42.07 at expiration. In this scenario, the average linear return for the trade would be 32.51%.

52 week high: HEWLETT-PACKARD recently reached a new 52-week high at $36.46. HPQ had traded in the range $21.80-$36.21 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 HPQ maintains its current direction and does not revert back to pricing on the bearish side of $36.46 on 18-Feb-2022. 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 HEWLETT-PACKARD closes at or above $36.21 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.05% 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: BIT DIGITAL INC $BTBT trading at a 14.55% discount for the 16-Dec-2022 expiration

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Synthetic Long Stock trade opportunity for BIT DIGITAL INC (BTBT) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BTBT was recently trading at $9.83 and has an implied volatility of 138.33% for this period. Based on an analysis of the options available for BTBT expiring on 16-Dec-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $2.40-$40.51 at expiration. In this scenario, the average linear return for the trade would be 71.16%.

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 $0.17 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 $1.60 per share. The final position can be considered as having a discount of $1.43 per share over the underlying price of $9.83 for a 14.55% 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.