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 High Alert: Trading today’s movement in KIMBERLY-CLARK $KMB

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Quantchabot has detected a promising Bull Call Spread trade opportunity for KIMBERLY-CLARK (KMB) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KMB was recently trading at $154.32 and has an implied volatility of 20.44% for this period. Based on an analysis of the options available for KMB expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $153.30-$168.01 at expiration. In this scenario, the average linear return for the trade would be 43.05%.

52 week high: KIMBERLY-CLARK recently reached a new 52-week high at $154.35. KMB had traded in the range $110.66-$152.73 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 KMB maintains its current direction and does not revert back to pricing on the bearish side of $154.32 on 16-Oct-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 KIMBERLY-CLARK closes at or above $151.90 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 53.99% 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 -9.0% move in ITRON $ITRI

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Quantchabot has detected a promising Bear Call Spread trade opportunity for ITRON (ITRI) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ITRI was recently trading at $64.97 and has an implied volatility of 38.23% for this period. Based on an analysis of the options available for ITRI expiring on 18-Sep-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $56.79-$64.99 at expiration. In this scenario, the average linear return for the trade would be 20.48%.

Big -9.01% Change: After closing the last trading session at $71.41, ITRON opened today at $65.20 and has reached a low of $63.49.

Trade approach: A movement as big as -9.01% is a significantly bearish indicator, so this trade is designed to be profitable if ITRI maintains its current direction and does not revert back to pricing on the bullish side of $64.97 on 18-Sep-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 ITRON closes at or below $65.85 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 53.90% 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 EQUINIX INC. COMMON STOCK REI $EQIX

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Quantchabot has detected a promising Bull Call Spread trade opportunity for EQUINIX INC. COMMON STOCK REI (EQIX) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EQIX was recently trading at $787.83 and has an implied volatility of 27.85% for this period. Based on an analysis of the options available for EQIX expiring on 18-Sep-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $785.32-$866.34 at expiration. In this scenario, the average linear return for the trade would be 37.87%.

52 week high: EQUINIX INC. COMMON STOCK REI recently reached a new 52-week high at $789.59. EQIX had traded in the range $477.87-$787.70 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 EQIX maintains its current direction and does not revert back to pricing on the bearish side of $787.83 on 18-Sep-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 EQUINIX INC. COMMON STOCK REI closes at or above $776.80 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 54.42% 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 10.4% move in VARONIS SYSTEMS INC. COMMON S $VRNS

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Quantchabot has detected a promising Bull Put Spread trade opportunity for VARONIS SYSTEMS INC. COMMON S (VRNS) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VRNS was recently trading at $117.18 and has an implied volatility of 44.84% for this period. Based on an analysis of the options available for VRNS expiring on 18-Sep-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $117.20-$137.27 at expiration. In this scenario, the average linear return for the trade would be 26.95%.

Big 10.44% Change: After closing the last trading session at $106.10, VARONIS SYSTEMS INC. COMMON S opened today at $120.00 and has reached a high of $120.00.

Trade approach: A movement as big as 10.44% is a significantly bullish indicator, so this trade is designed to be profitable if VRNS maintains its current direction and does not revert back to pricing on the bearish side of $117.18 on 18-Sep-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 VARONIS SYSTEMS INC. COMMON S closes at or above $115.55 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 53.58% 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 PAYPAL HOLDINGS CORP $PYPL

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Quantchabot has detected a promising Bull Put Spread trade opportunity for PAYPAL HOLDINGS CORP (PYPL) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PYPL was recently trading at $197.96 and has an implied volatility of 35.00% for this period. Based on an analysis of the options available for PYPL expiring on 18-Sep-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $198.00-$224.00 at expiration. In this scenario, the average linear return for the trade would be 77.92%.

52 week high: PAYPAL HOLDINGS CORP recently reached a new 52-week high at $199.10. PYPL had traded in the range $82.07-$198.66 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 PYPL maintains its current direction and does not revert back to pricing on the bearish side of $197.96 on 18-Sep-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 PAYPAL HOLDINGS CORP closes at or above $197.75 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 50.41% 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: ICAHN ENTERPRISES $IEP trading at a 10.50% discount for the 19-Mar-2021 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for ICAHN ENTERPRISES (IEP) for the 19-Mar-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

IEP was recently trading at $50.84 and has an implied volatility of 38.04% for this period. Based on an analysis of the options available for IEP expiring on 19-Mar-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $37.73-$68.78 at expiration. In this scenario, the average linear return for the trade would be 47.31%.

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 $50.00, which is already $0.84 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 $4.50 per share. The final position can be considered as having a discount of $5.34 per share over the underlying price of $50.84 for a 10.50% 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.

Big Gainer Alert: Trading today’s 7.9% move in APPFOLIO INC. CLASS A COMMON STOCK $APPF

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Quantchabot has detected a promising Bull Call Spread trade opportunity for APPFOLIO INC. CLASS A COMMON STOCK (APPF) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

APPF was recently trading at $156.98 and has an implied volatility of 49.52% for this period. Based on an analysis of the options available for APPF expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $157.03-$196.06 at expiration. In this scenario, the average linear return for the trade would be 43.14%.

Big 7.94% Change: After closing the last trading session at $145.43, APPFOLIO INC. CLASS A COMMON STOCK opened today at $146.85 and has reached a high of $158.97.

Trade approach: A movement as big as 7.94% is a significantly bullish indicator, so this trade is designed to be profitable if APPF maintains its current direction and does not revert back to pricing on the bearish side of $156.98 on 16-Oct-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 APPFOLIO INC. CLASS A COMMON STOCK closes at or above $155.20 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 52.10% 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 PETMED EXPRESS $PETS

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Quantchabot has detected a promising Bear Call Spread trade opportunity for PETMED EXPRESS (PETS) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PETS was recently trading at $30.65 and has an implied volatility of 49.84% for this period. Based on an analysis of the options available for PETS expiring on 21-Aug-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $27.50-$30.66 at expiration. In this scenario, the average linear return for the trade would be 40.62%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, PETMED EXPRESS 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 PETS 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 PETMED EXPRESS closed at or below $31.50 on 21-Aug-2020. Based on our analysis, there is a 59.88% 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: YELP $YELP returning up to 16.28% through 15-Jan-2021

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Quantchabot has detected a promising Covered Call trade opportunity for YELP (YELP) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

YELP was recently trading at $25.39 and has an implied volatility of 64.26% for this period. Based on an analysis of the options available for YELP expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $16.51-$39.12 at expiration. In this scenario, the average linear return for the trade would be 10.29%.

Moneyness: These options are currently 9.32% in the money and there is a 58.54% likelihood that these options will be exercised before or at expiration.

Most upside: If YELP closes at or above $23.00, this trade could return up to 16.28%. Based on our analysis, there is a 59.17% 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 28.04% chance the underlying will close at or below its breakeven price of $19.78, 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: MIRATI THERAPEUTICS INC. COMM $MRTX returning up to 18.22% through 15-Jan-2021

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Quantchabot has detected a promising Covered Call trade opportunity for MIRATI THERAPEUTICS INC. COMM (MRTX) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MRTX was recently trading at $123.15 and has an implied volatility of 70.59% for this period. Based on an analysis of the options available for MRTX expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $76.77-$197.99 at expiration. In this scenario, the average linear return for the trade would be 10.01%.

Moneyness: These options are currently 6.41% in the money and there is a 55.73% likelihood that these options will be exercised before or at expiration.

Most upside: If MIRATI THERAPEUTICS INC. COMM closes at or above $115.00, this trade could return up to 18.22%. Based on our analysis, there is a 55.84% 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 30.85% chance the underlying will close at or below its breakeven price of $97.28, 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.