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: AURORA CANNABIS INC $ACB trading at a 22.84% discount for the 21-Jan-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for AURORA CANNABIS INC (ACB) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ACB was recently trading at $11.60 and has an implied volatility of 109.39% for this period. Based on an analysis of the options available for ACB expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.03-$45.10 at expiration. In this scenario, the average linear return for the trade would be 91.48%.

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 $12.00, which is already $0.40 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 $3.05 per share. The final position can be considered as having a discount of $2.65 per share over the underlying price of $11.60 for a 22.84% 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 -8.8% move in MOHAWK INDUSTRIES $MHK

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Quantchabot has detected a promising Bear Call Spread trade opportunity for MOHAWK INDUSTRIES (MHK) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MHK was recently trading at $69.89 and has an implied volatility of 114.21% for this period. Based on an analysis of the options available for MHK expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $62.60-$69.89 at expiration. In this scenario, the average linear return for the trade would be 28.21%.

Big -8.76% Change: After closing the last trading session at $76.60, MOHAWK INDUSTRIES opened today at $69.89 and has reached a low of $67.79.

Trade approach: A movement as big as -8.76% is a significantly bearish indicator, so this trade is designed to be profitable if MHK maintains its current direction and does not revert back to pricing on the bullish side of $69.89 on 17-Jul-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 MOHAWK INDUSTRIES closes at or below $71.10 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 56.19% 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 SOLAREDGE TECHNOLOGIES INC. C $SEDG

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Quantchabot has detected a promising Bull Put Spread trade opportunity for SOLAREDGE TECHNOLOGIES INC. C (SEDG) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SEDG was recently trading at $157.96 and has an implied volatility of 72.07% for this period. Based on an analysis of the options available for SEDG expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $157.96-$169.33 at expiration. In this scenario, the average linear return for the trade would be 36.65%.

52 week high: SOLAREDGE TECHNOLOGIES INC. C recently reached a new 52-week high at $163.00. SEDG had traded in the range $60.22-$159.70 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 SEDG maintains its current direction and does not revert back to pricing on the bearish side of $157.96 on 17-Jul-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 SOLAREDGE TECHNOLOGIES INC. C closes at or above $157.15 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.96% 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: NIKOLA CORP $NKLA trading at a 32.33% discount for the 15-Jan-2021 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for NIKOLA CORP (NKLA) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NKLA was recently trading at $52.61 and has an implied volatility of 123.46% for this period. Based on an analysis of the options available for NKLA expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $21.86-$127.05 at expiration. In this scenario, the average linear return for the trade would be 123.11%.

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 $55.00, which is already $2.39 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 $19.40 per share. The final position can be considered as having a discount of $17.01 per share over the underlying price of $52.61 for a 32.33% 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 BEIGENE LTD. AMERICAN DEPOSITARY SHARES $BGNE

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Quantchabot has detected a promising Bull Call Spread trade opportunity for BEIGENE LTD. AMERICAN DEPOSITARY SHARES (BGNE) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BGNE was recently trading at $224.05 and has an implied volatility of 60.77% for this period. Based on an analysis of the options available for BGNE expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $224.05-$237.58 at expiration. In this scenario, the average linear return for the trade would be 45.15%.

52 week high: BEIGENE LTD. AMERICAN DEPOSITARY SHARES recently reached a new 52-week high at $226.87. BGNE had traded in the range $114.41-$210.35 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 BGNE maintains its current direction and does not revert back to pricing on the bearish side of $224.05 on 17-Jul-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 BEIGENE LTD. AMERICAN DEPOSITARY SHARES closes at or above $222.70 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 54.12% 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: IOVANCE BIOTHERAPEUTICS INC. COMMON STOCK $IOVA returning up to 37.47% through 18-Dec-2020

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Quantchabot has detected a promising Covered Call trade opportunity for IOVANCE BIOTHERAPEUTICS INC. COMMON STOCK (IOVA) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

IOVA was recently trading at $28.41 and has an implied volatility of 72.13% for this period. Based on an analysis of the options available for IOVA expiring on 18-Dec-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $17.71-$45.68 at expiration. In this scenario, the average linear return for the trade would be 10.55%.

Moneyness: These options are currently 23.13% out of the money and there is a 33.75% likelihood that these options will be exercised before or at expiration.

Most upside: If IOVANCE BIOTHERAPEUTICS INC. COMMON STOCK closes at or above $35.00, this trade could return up to 37.47%. Based on our analysis, there is a 33.07% 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 40.75% chance the underlying will close at or below its breakeven price of $25.46, 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.

Big Loser Alert: Trading today’s -7.7% move in FASTLY INC $FSLY

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for FASTLY INC (FSLY) for the 31-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FSLY was recently trading at $76.81 and has an implied volatility of 117.22% for this period. Based on an analysis of the options available for FSLY expiring on 31-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $59.47-$76.82 at expiration. In this scenario, the average linear return for the trade would be 57.62%.

Big -7.68% Change: After closing the last trading session at $83.20, FASTLY INC opened today at $81.66 and has reached a low of $76.55.

Trade approach: A movement as big as -7.68% is a significantly bearish indicator, so this trade is designed to be profitable if FSLY maintains its current direction and does not revert back to pricing on the bullish side of $76.81 on 31-Jul-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 FASTLY INC closes at or below $78.20 on 31-Jul-2020. Based on our risk-neutral analysis, there is a 52.78% 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: CHESAPEAKE ENERGY CORP $CHKAQ trading at a 24.62% discount for the 21-Jan-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for CHESAPEAKE ENERGY CORP (CHKAQ) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CHKAQ was recently trading at $6.50 and has an implied volatility of 142.25% for this period. Based on an analysis of the options available for CHKAQ expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $1.13-$37.92 at expiration. In this scenario, the average linear return for the trade would be 128.39%.

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 long call position is opened at a strike of $5.00, which is already $1.50 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 $0.10 per share. The final position can be considered as having a discount of $1.60 per share over the underlying price of $6.50 for a 24.62% 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 NASDAQ INC COMMON STOCK $NDAQ

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Quantchabot has detected a promising Bull Put Spread trade opportunity for NASDAQ INC COMMON STOCK (NDAQ) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NDAQ was recently trading at $123.29 and has an implied volatility of 37.03% for this period. Based on an analysis of the options available for NDAQ expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $123.29-$127.77 at expiration. In this scenario, the average linear return for the trade would be 20.92%.

52 week high: NASDAQ INC COMMON STOCK recently reached a new 52-week high at $124.08. NDAQ had traded in the range $71.66-$123.12 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 NDAQ maintains its current direction and does not revert back to pricing on the bearish side of $123.29 on 17-Jul-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 NASDAQ INC COMMON STOCK closes at or above $122.95 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 53.10% 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.

Covered Call Alert: PROSHARES ULTRASHORT S&P500 $SDS returning up to 47.93% through 18-Dec-2020

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Quantchabot has detected a promising Covered Call trade opportunity for PROSHARES ULTRASHORT S&P500 (SDS) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SDS was recently trading at $18.78 and has an implied volatility of 62.06% for this period. Based on an analysis of the options available for SDS expiring on 18-Dec-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $12.47-$28.17 at expiration. In this scenario, the average linear return for the trade would be 12.38%.

Moneyness: These options are currently 33.01% out of the money and there is a 18.19% likelihood that these options will be exercised before or at expiration.

Most upside: If PROSHARES ULTRASHORT S&P500 closes at or above $25.00, this trade could return up to 47.93%. Based on our analysis, there is a 23.98% 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 39.87% chance the underlying will close at or below its breakeven price of $16.88, 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.