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 T-MOBILE US INC. COMMON STOCK $TMUS

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Quantchabot has detected a promising Bear Put Spread trade opportunity for T-MOBILE US INC. COMMON STOCK (TMUS) for the 4-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TMUS was recently trading at $104.47 and has an implied volatility of 33.38% for this period. Based on an analysis of the options available for TMUS expiring on 4-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $95.69-$104.48 at expiration. In this scenario, the average linear return for the trade would be 33.16%.

52 week low: T-MOBILE US INC. COMMON STOCK recently reached a new 52-week low at $104.24. TMUS had traded in the range $106.70-$150.20 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 TMUS maintains its current direction and does not revert back to pricing on the bullish side of $104.47 on 4-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 bearish strategy, the trade would be profitable if T-MOBILE US INC. COMMON STOCK closes at or below $104.92 on 4-Feb-2022. Based on our risk-neutral analysis, there is a 51.91% 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.

Synthetic Long Discount Alert: BIT DIGITAL INC $BTBT trading at a 16.02% discount for the 16-Sep-2022 expiration

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

BTBT was recently trading at $5.12 and has an implied volatility of 131.21% for this period. Based on an analysis of the options available for BTBT expiring on 16-Sep-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $1.73-$15.17 at expiration. In this scenario, the average linear return for the trade would be 64.71%.

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 $0.12 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 $0.70 per share. The final position can be considered as having a discount of $0.82 per share over the underlying price of $5.12 for a 16.02% 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.

Big Loser Alert: Trading today’s -8.2% move in SNOWFLAKE INC $SNOW

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Quantchabot has detected a promising Bear Call Spread trade opportunity for SNOWFLAKE INC (SNOW) for the 25-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SNOW was recently trading at $275.02 and has an implied volatility of 61.85% for this period. Based on an analysis of the options available for SNOW expiring on 25-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $220.65-$275.04 at expiration. In this scenario, the average linear return for the trade would be 65.15%.

Big -8.23% Change: After closing the last trading session at $299.68, SNOWFLAKE INC opened today at $290.00 and has reached a low of $274.00.

Trade approach: A movement as big as -8.23% is a significantly bearish indicator, so this trade is designed to be profitable if SNOW maintains its current direction and does not revert back to pricing on the bullish side of $275.02 on 25-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 bearish strategy, the trade would be profitable if SNOWFLAKE INC closes at or below $275.10 on 25-Feb-2022. Based on our risk-neutral analysis, there is a 50.04% 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 ROYAL BANK OF CANADA. $RY

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ROYAL BANK OF CANADA. (RY) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RY was recently trading at $111.34 and has an implied volatility of 16.61% for this period. Based on an analysis of the options available for RY expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $110.41-$116.59 at expiration. In this scenario, the average linear return for the trade would be 29.87%.

52 week high: ROYAL BANK OF CANADA. recently reached a new 52-week high at $112.66. RY had traded in the range $80.53-$110.02 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 RY maintains its current direction and does not revert back to pricing on the bearish side of $111.34 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 ROYAL BANK OF CANADA. closes at or above $108.85 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 60.27% 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 Low Alert: Trading today’s movement in PAYPAL HOLDINGS CORP $PYPL

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Quantchabot has detected a promising Bear Put Spread trade opportunity for PAYPAL HOLDINGS CORP (PYPL) for the 28-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PYPL was recently trading at $178.17 and has an implied volatility of 44.91% for this period. Based on an analysis of the options available for PYPL expiring on 28-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $161.12-$178.17 at expiration. In this scenario, the average linear return for the trade would be 71.46%.

52 week low: PAYPAL HOLDINGS CORP recently reached a new 52-week low at $177.40. PYPL had traded in the range $179.15-$310.16 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 PYPL maintains its current direction and does not revert back to pricing on the bullish side of $178.17 on 28-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 bearish strategy, the trade would be profitable if PAYPAL HOLDINGS CORP closes at or below $179.35 on 28-Jan-2022. Based on our risk-neutral analysis, there is a 52.61% 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 -7.9% move in AIRBNB INC. CLASS A COMMON STOCK $ABNB

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Quantchabot has detected a promising Bear Call Spread trade opportunity for AIRBNB INC. CLASS A COMMON STOCK (ABNB) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ABNB was recently trading at $152.85 and has an implied volatility of 52.84% for this period. Based on an analysis of the options available for ABNB expiring on 18-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $128.52-$152.86 at expiration. In this scenario, the average linear return for the trade would be 73.54%.

Big -7.95% Change: After closing the last trading session at $166.05, AIRBNB INC. CLASS A COMMON STOCK opened today at $159.76 and has reached a low of $152.10.

Trade approach: A movement as big as -7.95% is a significantly bearish indicator, so this trade is designed to be profitable if ABNB maintains its current direction and does not revert back to pricing on the bullish side of $152.85 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 bearish strategy, the trade would be profitable if AIRBNB INC. CLASS A COMMON STOCK closes at or below $154.35 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 52.23% 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: TWO HARBORS INVESTMENT $TWO trading at a 13.16% discount for the 19-Jan-2024 expiration

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

TWO was recently trading at $5.82 and has an implied volatility of 36.76% for this period. Based on an analysis of the options available for TWO expiring on 19-Jan-2024, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.48-$9.90 at expiration. In this scenario, the average linear return for the trade would be 66.26%.

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 $0.82 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 $0.05 per share. The final position can be considered as having a discount of $0.77 per share over the underlying price of $5.82 for a 13.16% 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: MERIDA MERGER CORP. I COMMON STOCK $MCMJ trading at a 15.50% discount for the 15-Jul-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for MERIDA MERGER CORP. I COMMON STOCK (MCMJ) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MCMJ was recently trading at $10.00 and has an implied volatility of 105.27% for this period. Based on an analysis of the options available for MCMJ expiring on 15-Jul-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $4.72-$21.24 at expiration. In this scenario, the average linear return for the trade would be 64.21%.

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 ($0.00) 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 $1.55 per share. The final position can be considered as having a discount of $1.55 per share over the underlying price of $10.00 for a 15.50% 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: BLACKBERRY LIMITED COMMON STOC $BB returning up to 32.45% through 17-Jun-2022

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Quantchabot has detected a promising Covered Call trade opportunity for BLACKBERRY LIMITED COMMON STOC (BB) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BB was recently trading at $8.59 and has an implied volatility of 66.94% for this period. Based on an analysis of the options available for BB expiring on 17-Jun-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $5.53-$13.36 at expiration. In this scenario, the average linear return for the trade would be 10.92%.

Moneyness: These options are currently 16.35% out of the money and there is a 36.95% likelihood that these options will be exercised before or at expiration.

Most upside: If BLACKBERRY LIMITED COMMON STOC closes at or above $10.00, this trade could return up to 32.45%. Based on our analysis, there is a 36.58% 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 38.42% chance the underlying will close at or below its breakeven price of $7.55, 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 High Alert: Trading today’s movement in CHARLES SCHWAB $SCHW

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CHARLES SCHWAB (SCHW) for the 14-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SCHW was recently trading at $89.84 and has an implied volatility of 34.25% for this period. Based on an analysis of the options available for SCHW expiring on 14-Jan-2022, there is a 34.15% likelihood that the underlying will close within the analyzed range of $89.84-$93.26 at expiration. In this scenario, the average linear return for the trade would be 38.86%.

52 week high: CHARLES SCHWAB recently reached a new 52-week high at $92.14. SCHW had traded in the range $50.77-$91.50 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 SCHW maintains its current direction and does not revert back to pricing on the bearish side of $89.84 on 14-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 CHARLES SCHWAB closes at or above $89.71 on 14-Jan-2022. Based on our risk-neutral analysis, there is a 51.55% 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.