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.

52-Week Low Alert: Trading today’s movement in ZOETIS INC $ZTS

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

ZTS was recently trading at $155.65 and has an implied volatility of 34.62% for this period. Based on an analysis of the options available for ZTS expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $140.48-$155.80 at expiration. In this scenario, the average linear return for the trade would be 37.25%.

52 week low: ZOETIS INC recently reached a new 52-week low at $154.33. ZTS had traded in the range $156.67-$249.27 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 ZTS maintains its current direction and does not revert back to pricing on the bullish side of $155.65 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 ZOETIS INC closes at or below $156.20 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.98% 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: STAR BULK CARRIERS $SBLK trading at a 13.06% discount for the 19-Jan-2024 expiration

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

SBLK was recently trading at $26.11 and has an implied volatility of 62.91% for this period. Based on an analysis of the options available for SBLK expiring on 19-Jan-2024, there is a 68.28% likelihood that the underlying will close within the analyzed range of $12.27-$60.41 at expiration. In this scenario, the average linear return for the trade would be 66.39%.

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 $27.00, which is already $0.89 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 $4.30 per share. The final position can be considered as having a discount of $3.41 per share over the underlying price of $26.11 for a 13.06% 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: VERTICAL AEROSPACE LTD $EVTL trading at a 10.96% discount for the 20-Jan-2023 expiration

Quantchabot has detected a promising Synthetic Long Stock trade opportunity for VERTICAL AEROSPACE LTD (EVTL) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EVTL was recently trading at $5.11 and has an implied volatility of 99.15% for this period. Based on an analysis of the options available for EVTL expiring on 20-Jan-2023, there is a 68.29% likelihood that the underlying will close within the analyzed range of $2.39-$11.20 at expiration. In this scenario, the average linear return for the trade would be 49.34%.

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 $5.00, which is already $0.11 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 $0.45 per share. The final position can be considered as having a discount of $0.56 per share over the underlying price of $5.11 for a 10.96% 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: DIANA SHIPPING $DSX trading at a 10.02% discount for the 19-Jan-2024 expiration

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

DSX was recently trading at $5.28 and has an implied volatility of 71.17% for this period. Based on an analysis of the options available for DSX expiring on 19-Jan-2024, there is a 68.28% likelihood that the underlying will close within the analyzed range of $2.23-$13.56 at expiration. In this scenario, the average linear return for the trade would be 63.56%.

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 $5.00, which is already $0.28 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 $0.25 per share. The final position can be considered as having a discount of $0.53 per share over the underlying price of $5.28 for a 10.02% 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.

StockTwits Trending Alert: Trading recent interest in SILVERGATE CAPITAL CORP $SI

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

SI was recently trading at $61.88 and has an implied volatility of 98.67% for this period. Based on an analysis of the options available for SI expiring on 19-Jan-2024, there is a 32.82% likelihood that the underlying will close within the analyzed range of $18.49-$61.92 at expiration. In this scenario, the average linear return for the trade would be 2052.83%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SILVERGATE CAPITAL 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 SI 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 SILVERGATE CAPITAL CORP closed at or below $91.76 on 19-Jan-2024. Based on our analysis, there is a 61.09% 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 BOEING $BA

Quantchabot has detected a promising Bear Call Spread trade opportunity for BOEING (BA) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BA was recently trading at $116.79 and has an implied volatility of 58.61% for this period. Based on an analysis of the options available for BA expiring on 22-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $96.39-$116.93 at expiration. In this scenario, the average linear return for the trade would be 26.58%.

52 week low: BOEING recently reached a new 52-week low at $115.33. BA had traded in the range $117.08-$255.14 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 BA maintains its current direction and does not revert back to pricing on the bullish side of $116.79 on 22-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 BOEING closes at or below $117.13 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.35% 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 -10.2% move in BLOCK INC $SQ

Quantchabot has detected a promising Bear Call Spread trade opportunity for BLOCK INC (SQ) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SQ was recently trading at $64.53 and has an implied volatility of 93.73% for this period. Based on an analysis of the options available for SQ expiring on 29-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $46.22-$64.62 at expiration. In this scenario, the average linear return for the trade would be 26.36%.

Big -10.21% Change: After closing the last trading session at $71.87, BLOCK INC opened today at $66.16 and has reached a low of $63.03.

Trade approach: A movement as big as -10.21% is a significantly bearish indicator, so this trade is designed to be profitable if SQ maintains its current direction and does not revert back to pricing on the bullish side of $64.53 on 29-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 BLOCK INC closes at or below $64.83 on 29-Jul-2022. 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.

52-Week Low Alert: Trading today’s movement in INFOSYS $INFY

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

INFY was recently trading at $18.02 and has an implied volatility of 40.32% for this period. Based on an analysis of the options available for INFY expiring on 17-Jun-2022, there is a 34.59% likelihood that the underlying will close within the analyzed range of $17.21-$18.02 at expiration. In this scenario, the average linear return for the trade would be 11.08%.

52 week low: INFOSYS recently reached a new 52-week low at $17.76. INFY had traded in the range $17.90-$26.39 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 INFY maintains its current direction and does not revert back to pricing on the bullish side of $18.02 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 INFOSYS closes at or below $18.10 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 54.07% 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 Loser Alert: Trading today’s -7.7% move in SEA LTD ADS $SE

Quantchabot has detected a promising Bear Call Spread trade opportunity for SEA LTD ADS (SE) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SE was recently trading at $70.43 and has an implied volatility of 88.86% for this period. Based on an analysis of the options available for SE expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $48.14-$70.57 at expiration. In this scenario, the average linear return for the trade would be 13.06%.

Big -7.67% Change: After closing the last trading session at $76.28, SEA LTD ADS opened today at $71.89 and has reached a low of $69.27.

Trade approach: A movement as big as -7.67% is a significantly bearish indicator, so this trade is designed to be profitable if SE maintains its current direction and does not revert back to pricing on the bullish side of $70.43 on 19-Aug-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 SEA LTD ADS closes at or below $70.57 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 50.00% 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 PROLOGIS $PLD

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

PLD was recently trading at $108.24 and has an implied volatility of 44.55% for this period. Based on an analysis of the options available for PLD expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $94.14-$107.56 at expiration. In this scenario, the average linear return for the trade would be 53.29%.

52 week low: PROLOGIS recently reached a new 52-week low at $106.46. PLD had traded in the range $116.37-$174.54 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 PLD maintains its current direction and does not revert back to pricing on the bullish side of $108.24 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 PROLOGIS closes at or below $108.45 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 52.48% 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.