Category Archives: Trade Ideas

Synthetic Long Discount Alert: CRESTWOOD EQUITY PARTNERS LP $CEQP trading at a 10.78% discount for the 20-Jan-2023 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for CRESTWOOD EQUITY PARTNERS LP (CEQP) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CEQP was recently trading at $16.70 and has an implied volatility of 59.43% for this period. Based on an analysis of the options available for CEQP expiring on 20-Jan-2023, there is a 68.27% likelihood that the underlying will close within the analyzed range of $7.05-$40.10 at expiration. In this scenario, the average linear return for the trade would be 49.05%.

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 $17.50, which is already $0.80 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 $2.60 per share. The final position can be considered as having a discount of $1.80 per share over the underlying price of $16.70 for a 10.78% 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: NANO-X IMAGING LTD ORDINARY SHARES $NNOX trading at a 10.78% discount for the 20-Jan-2023 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for NANO-X IMAGING LTD ORDINARY SHARES (NNOX) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NNOX was recently trading at $68.93 and has an implied volatility of 111.05% for this period. Based on an analysis of the options available for NNOX expiring on 20-Jan-2023, there is a 68.27% likelihood that the underlying will close within the analyzed range of $13.69-$352.05 at expiration. In this scenario, the average linear return for the trade would be 72.42%.

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 $70.00, which is already $1.07 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 $8.50 per share. The final position can be considered as having a discount of $7.43 per share over the underlying price of $68.93 for a 10.78% 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 ALIGN TECHNOLOGY $ALGN

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ALIGN TECHNOLOGY (ALGN) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ALGN was recently trading at $505.13 and has an implied volatility of 39.45% for this period. Based on an analysis of the options available for ALGN expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $505.23-$580.54 at expiration. In this scenario, the average linear return for the trade would be 63.66%.

52 week high: ALIGN TECHNOLOGY recently reached a new 52-week high at $508.96. ALGN had traded in the range $127.88-$507.05 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 ALGN maintains its current direction and does not revert back to pricing on the bearish side of $505.13 on 15-Jan-2021. 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 ALIGN TECHNOLOGY closes at or above $503.30 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.10% 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.

Big Loser Alert: Trading today’s -7.1% move in CUREVAC N.V. $CVAC

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

CVAC was recently trading at $97.73 and has an implied volatility of 92.18% for this period. Based on an analysis of the options available for CVAC expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $70.65-$97.75 at expiration. In this scenario, the average linear return for the trade would be 5629.63%.

Big -7.07% Change: After closing the last trading session at $105.17, CUREVAC N.V. opened today at $99.54 and has reached a low of $97.60.

Trade approach: A movement as big as -7.07% is a significantly bearish indicator, so this trade is designed to be profitable if CVAC maintains its current direction and does not revert back to pricing on the bullish side of $97.73 on 15-Jan-2021. 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 CUREVAC N.V. closes at or below $146.40 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 89.32% 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 7.1% move in ARCELORMITTAL $MT

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ARCELORMITTAL (MT) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MT was recently trading at $19.45 and has an implied volatility of 44.87% for this period. Based on an analysis of the options available for MT expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $19.45-$22.78 at expiration. In this scenario, the average linear return for the trade would be 65.87%.

Big 7.10% Change: After closing the last trading session at $18.16, ARCELORMITTAL opened today at $19.10 and has reached a high of $19.56.

Trade approach: A movement as big as 7.10% is a significantly bullish indicator, so this trade is designed to be profitable if MT maintains its current direction and does not revert back to pricing on the bearish side of $19.45 on 15-Jan-2021. 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 ARCELORMITTAL closes at or above $19.17 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 53.70% 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 TE CONNECTIVITY $TEL

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Quantchabot has detected a promising Bull Put Spread trade opportunity for TE CONNECTIVITY (TEL) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TEL was recently trading at $115.04 and has an implied volatility of 28.01% for this period. Based on an analysis of the options available for TEL expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $115.06-$126.99 at expiration. In this scenario, the average linear return for the trade would be 39.73%.

52 week high: TE CONNECTIVITY recently reached a new 52-week high at $117.18. TEL had traded in the range $48.62-$117.00 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 TEL maintains its current direction and does not revert back to pricing on the bearish side of $115.04 on 15-Jan-2021. 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 TE CONNECTIVITY closes at or above $114.85 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.75% 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 7.4% move in BARCLAYS $BCS

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

BCS was recently trading at $7.65 and has an implied volatility of 47.69% for this period. Based on an analysis of the options available for BCS expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.65-$9.05 at expiration. In this scenario, the average linear return for the trade would be 57.37%.

Big 7.44% Change: After closing the last trading session at $7.12, BARCLAYS opened today at $7.46 and has reached a high of $7.67.

Trade approach: A movement as big as 7.44% is a significantly bullish indicator, so this trade is designed to be profitable if BCS maintains its current direction and does not revert back to pricing on the bearish side of $7.65 on 15-Jan-2021. 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 BARCLAYS closes at or above $7.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.60% 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 CONSTELLATION BRANDS $STZ

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Quantchabot has detected a promising Bull Call Spread trade opportunity for CONSTELLATION BRANDS (STZ) for the 8-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

STZ was recently trading at $209.02 and has an implied volatility of 31.79% for this period. Based on an analysis of the options available for STZ expiring on 8-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $209.05-$231.72 at expiration. In this scenario, the average linear return for the trade would be 65.03%.

52 week high: CONSTELLATION BRANDS recently reached a new 52-week high at $210.50. STZ had traded in the range $104.28-$208.66 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 STZ maintains its current direction and does not revert back to pricing on the bearish side of $209.02 on 8-Jan-2021. 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 CONSTELLATION BRANDS closes at or above $208.50 on 8-Jan-2021. Based on our risk-neutral analysis, there is a 51.03% 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 -8.4% move in PALANTIR TECHNOLOGIES INC $PLTR

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

PLTR was recently trading at $24.83 and has an implied volatility of 130.84% for this period. Based on an analysis of the options available for PLTR expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $15.66-$24.83 at expiration. In this scenario, the average linear return for the trade would be 429.90%.

Big -8.41% Change: After closing the last trading session at $27.11, PALANTIR TECHNOLOGIES INC opened today at $28.09 and has reached a low of $24.45.

Trade approach: A movement as big as -8.41% is a significantly bearish indicator, so this trade is designed to be profitable if PLTR maintains its current direction and does not revert back to pricing on the bullish side of $24.83 on 15-Jan-2021. 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 PALANTIR TECHNOLOGIES INC closes at or below $36.82 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 80.36% 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 COGNIZANT TECH SOLUTION $CTSH

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Quantchabot has detected a promising Bull Call Spread trade opportunity for COGNIZANT TECH SOLUTION (CTSH) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CTSH was recently trading at $78.41 and has an implied volatility of 27.23% for this period. Based on an analysis of the options available for CTSH expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $78.43-$86.32 at expiration. In this scenario, the average linear return for the trade would be 57.39%.

52 week high: COGNIZANT TECH SOLUTION recently reached a new 52-week high at $79.03. CTSH had traded in the range $40.01-$79.00 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 CTSH maintains its current direction and does not revert back to pricing on the bearish side of $78.41 on 15-Jan-2021. 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 COGNIZANT TECH SOLUTION closes at or above $78.05 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.99% 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.