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.

Synthetic Long Discount Alert: LIVEWIRE GROUP INC $LVWR trading at a 18.48% discount for the 21-Apr-2023 expiration

Quantchabot has detected a promising Synthetic Long Stock trade opportunity for LIVEWIRE GROUP INC (LVWR) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LVWR was recently trading at $9.69 and has an implied volatility of 124.85% for this period. Based on an analysis of the options available for LVWR expiring on 21-Apr-2023, there is a 68.29% likelihood that the underlying will close within the analyzed range of $3.94-$24.95 at expiration. In this scenario, the average linear return for the trade would be 79.92%.

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 put position is opened at a strike of $10.00, which is already $0.31 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 $2.10 per share. The final position can be considered as having a discount of $1.79 per share over the underlying price of $9.69 for a 18.48% 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: PARAMOUNT GLOBAL CLASS B COMMON STOCK $PARA returning up to 13.65% through 17-Mar-2023

Quantchabot has detected a promising Covered Call trade opportunity for PARAMOUNT GLOBAL CLASS B COMMON STOCK (PARA) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PARA was recently trading at $19.91 and has an implied volatility of 53.99% for this period. Based on an analysis of the options available for PARA expiring on 17-Mar-2023, there is a 68.29% likelihood that the underlying will close within the analyzed range of $13.74-$28.37 at expiration. In this scenario, the average linear return for the trade would be 10.11%.

Moneyness: These options are currently 12.13% in the money and there is a 61.31% likelihood that these options will be exercised before or at expiration.

Most upside: If PARAMOUNT GLOBAL CLASS B COMMON STOCK closes at or above $17.50, this trade could return up to 13.65%. Based on our analysis, there is a 63.04% 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 24.30% chance the underlying will close at or below its breakeven price of $15.34, 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 Low Alert: Trading today’s movement in EAGLE PHARMACEUTICALS INC. CO $EGRX

Quantchabot has detected a promising Covered Put trade opportunity for EAGLE PHARMACEUTICALS INC. CO (EGRX) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EGRX was recently trading at $26.68 and has an implied volatility of 71.72% for this period. Based on an analysis of the options available for EGRX expiring on 21-Oct-2022, there is a 34.25% likelihood that the underlying will close within the analyzed range of $22.82-$26.72 at expiration. In this scenario, the average linear return for the trade would be 10.62%.

52 week low: EAGLE PHARMACEUTICALS INC. CO recently reached a new 52-week low at $25.07. EGRX had traded in the range $26.21-$58.25 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 EGRX maintains its current direction and does not revert back to pricing on the bullish side of $26.68 on 21-Oct-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 EAGLE PHARMACEUTICALS INC. CO closes at or below $26.81 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.83% 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: SYMBOTIC INC. CLASS A COMMON STOCK $SYM trading at a 15.19% discount for the 19-May-2023 expiration

Quantchabot has detected a promising Synthetic Long Stock trade opportunity for SYMBOTIC INC. CLASS A COMMON STOCK (SYM) for the 19-May-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SYM was recently trading at $12.97 and has an implied volatility of 119.62% for this period. Based on an analysis of the options available for SYM expiring on 19-May-2023, there is a 68.29% likelihood that the underlying will close within the analyzed range of $5.17-$34.21 at expiration. In this scenario, the average linear return for the trade would be 80.78%.

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 $12.50, which is already $0.47 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 $1.50 per share. The final position can be considered as having a discount of $1.97 per share over the underlying price of $12.97 for a 15.19% 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 9.0% move in SEA LTD ADS $SE

Quantchabot has detected a promising Bull Call Spread trade opportunity for SEA LTD ADS (SE) for the 18-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SE was recently trading at $60.29 and has an implied volatility of 76.65% for this period. Based on an analysis of the options available for SE expiring on 18-Nov-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $60.51-$79.36 at expiration. In this scenario, the average linear return for the trade would be 10.50%.

Big 9.04% Change: After closing the last trading session at $55.29, SEA LTD ADS opened today at $56.96 and has reached a high of $60.70.

Trade approach: A movement as big as 9.04% is a significantly bullish indicator, so this trade is designed to be profitable if SE maintains its current direction and does not revert back to pricing on the bearish side of $60.29 on 18-Nov-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 SEA LTD ADS closes at or above $48.10 on 18-Nov-2022. Based on our risk-neutral analysis, there is a 80.18% 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: AIRBNB INC. CLASS A COMMON STOCK $ABNB returning up to 17.96% through 17-Mar-2023

Quantchabot has detected a promising Covered Call trade opportunity for AIRBNB INC. CLASS A COMMON STOCK (ABNB) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ABNB was recently trading at $111.17 and has an implied volatility of 56.21% for this period. Based on an analysis of the options available for ABNB expiring on 17-Mar-2023, there is a 68.29% likelihood that the underlying will close within the analyzed range of $77.43-$164.76 at expiration. In this scenario, the average linear return for the trade would be 10.21%.

Moneyness: These options are currently 1.06% in the money and there is a 52.77% likelihood that these options will be exercised before or at expiration.

Most upside: If AIRBNB INC. CLASS A COMMON STOCK closes at or above $110.00, this trade could return up to 17.96%. Based on our analysis, there is a 52.79% 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 30.58% chance the underlying will close at or below its breakeven price of $93.25, 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 Low Alert: Trading today’s movement in KALVISTA PHARMACEUTICALS INC. $KALV

Quantchabot has detected a promising Covered Put trade opportunity for KALVISTA PHARMACEUTICALS INC. (KALV) for the 18-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KALV was recently trading at $6.48 and has an implied volatility of 101.36% for this period. Based on an analysis of the options available for KALV expiring on 18-Nov-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $4.54-$6.50 at expiration. In this scenario, the average linear return for the trade would be 33.38%.

52 week low: KALVISTA PHARMACEUTICALS INC. recently reached a new 52-week low at $6.00. KALV had traded in the range $8.00-$18.53 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 KALV maintains its current direction and does not revert back to pricing on the bullish side of $6.48 on 18-Nov-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 KALVISTA PHARMACEUTICALS INC. closes at or below $6.62 on 18-Nov-2022. Based on our risk-neutral analysis, there is a 51.98% 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: MFA FINANCIAL $MFA trading at a 11.49% discount for the 19-Jan-2024 expiration

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

MFA was recently trading at $8.53 and has an implied volatility of 54.79% for this period. Based on an analysis of the options available for MFA expiring on 19-Jan-2024, there is a 68.28% likelihood that the underlying will close within the analyzed range of $4.82-$16.78 at expiration. In this scenario, the average linear return for the trade would be 81.82%.

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 $1.47 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 $2.45 per share. The final position can be considered as having a discount of $0.98 per share over the underlying price of $8.53 for a 11.49% 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 7.6% move in KKR & CO INC $KKR

Quantchabot has detected a promising Bull Call Spread trade opportunity for KKR & CO INC (KKR) for the 28-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KKR was recently trading at $47.33 and has an implied volatility of 45.44% for this period. Based on an analysis of the options available for KKR expiring on 28-Oct-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $47.42-$53.37 at expiration. In this scenario, the average linear return for the trade would be 11.57%.

Big 7.64% Change: After closing the last trading session at $43.97, KKR & CO INC opened today at $44.98 and has reached a high of $47.36.

Trade approach: A movement as big as 7.64% is a significantly bullish indicator, so this trade is designed to be profitable if KKR maintains its current direction and does not revert back to pricing on the bearish side of $47.33 on 28-Oct-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 KKR & CO INC closes at or above $46.10 on 28-Oct-2022. Based on our risk-neutral analysis, there is a 59.49% 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: FIBROGEN INC COMMON STOCK $FGEN returning up to 43.91% through 17-Mar-2023

Quantchabot has detected a promising Covered Call trade opportunity for FIBROGEN INC COMMON STOCK (FGEN) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FGEN was recently trading at $13.31 and has an implied volatility of 72.98% for this period. Based on an analysis of the options available for FGEN expiring on 17-Mar-2023, there is a 68.29% likelihood that the underlying will close within the analyzed range of $8.28-$22.08 at expiration. In this scenario, the average linear return for the trade would be 11.74%.

Moneyness: These options are currently 31.58% out of the money and there is a 31.51% likelihood that these options will be exercised before or at expiration.

Most upside: If FIBROGEN INC COMMON STOCK closes at or above $17.50, this trade could return up to 43.91%. Based on our analysis, there is a 29.94% 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 41.42% chance the underlying will close at or below its breakeven price of $12.16, 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.