Category Archives: Trade Ideas

StockTwits Trending Alert: Trading recent interest in DEERE $DE

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for DEERE (DE) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DE was recently trading at $372.90 and has an implied volatility of 35.73% for this period. Based on an analysis of the options available for DE expiring on 19-Jan-2024, there is a 30.94% likelihood that the underlying will close within the analyzed range of $243.57-$372.70 at expiration. In this scenario, the average linear return for the trade would be 111.14%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, DEERE 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 DE 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 DEERE closed at or below $459.10 on 19-Jan-2024. Based on our analysis, there is a 64.45% 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 LULULEMON ATHLETICA $LULU

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Quantchabot has detected a promising Covered Put trade opportunity for LULULEMON ATHLETICA (LULU) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LULU was recently trading at $280.72 and has an implied volatility of 46.07% for this period. Based on an analysis of the options available for LULU expiring on 19-Jan-2024, there is a 31.71% likelihood that the underlying will close within the analyzed range of $160.39-$280.81 at expiration. In this scenario, the average linear return for the trade would be 289.65%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, LULULEMON ATHLETICA 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 LULU 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 LULULEMON ATHLETICA closed at or below $415.67 on 19-Jan-2024. Based on our analysis, there is a 72.47% 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 FOOT LOCKER $FL

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Quantchabot has detected a promising Covered Put trade opportunity for FOOT LOCKER (FL) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FL was recently trading at $30.59 and has an implied volatility of 53.40% for this period. Based on an analysis of the options available for FL expiring on 19-Jan-2024, there is a 37.56% likelihood that the underlying will close within the analyzed range of $14.44-$30.59 at expiration. In this scenario, the average linear return for the trade would be 120.21%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, FOOT LOCKER 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 FL on StockTwits appears to be significantly 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 FOOT LOCKER closed at or below $41.68 on 19-Jan-2024. Based on our analysis, there is a 70.32% 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.

Synthetic Long Discount Alert: VERTICAL AEROSPACE LTD $EVTL trading at a 10.46% discount for the 21-Oct-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for VERTICAL AEROSPACE LTD (EVTL) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EVTL was recently trading at $6.31 and has an implied volatility of 95.19% for this period. Based on an analysis of the options available for EVTL expiring on 21-Oct-2022, there is a 68.29% likelihood that the underlying will close within the analyzed range of $3.40-$11.83 at expiration. In this scenario, the average linear return for the trade would be 48.75%.

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 $7.50, which is already $1.19 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 $1.85 per share. The final position can be considered as having a discount of $0.66 per share over the underlying price of $6.31 for a 10.46% 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: VALE $VALE trading at a 10.22% discount for the 20-Dec-2024 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for VALE (VALE) for the 20-Dec-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VALE was recently trading at $15.65 and has an implied volatility of 44.11% for this period. Based on an analysis of the options available for VALE expiring on 20-Dec-2024, there is a 68.27% likelihood that the underlying will close within the analyzed range of $8.14-$33.72 at expiration. In this scenario, the average linear return for the trade would be 65.92%.

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 long call position is opened at a strike of $15.00, which is already $0.65 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 $0.95 per share. The final position can be considered as having a discount of $1.60 per share over the underlying price of $15.65 for a 10.22% 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 Low Alert: Trading today’s movement in TRANSUNION $TRU

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Quantchabot has detected a promising Bear Call Spread trade opportunity for TRANSUNION (TRU) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TRU was recently trading at $80.09 and has an implied volatility of 33.23% for this period. Based on an analysis of the options available for TRU expiring on 17-Jun-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $72.68-$80.03 at expiration. In this scenario, the average linear return for the trade would be 33.32%.

52 week low: TRANSUNION recently reached a new 52-week low at $79.95. TRU had traded in the range $80.31-$125.35 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 TRU maintains its current direction and does not revert back to pricing on the bullish side of $80.09 on 17-Jun-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 TRANSUNION closes at or below $81.25 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 56.25% 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 -8.1% move in WHIRLPOOL $WHR

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Quantchabot has detected a promising Bear Call Spread trade opportunity for WHIRLPOOL (WHR) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WHR was recently trading at $171.57 and has an implied volatility of 46.47% for this period. Based on an analysis of the options available for WHR expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $144.45-$169.95 at expiration. In this scenario, the average linear return for the trade would be 24.46%.

Big -8.07% Change: After closing the last trading session at $186.63, WHIRLPOOL opened today at $179.05 and has reached a low of $171.04.

Trade approach: A movement as big as -8.07% is a significantly bearish indicator, so this trade is designed to be profitable if WHR maintains its current direction and does not revert back to pricing on the bullish side of $171.57 on 1-Jul-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 WHIRLPOOL closes at or below $170.00 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 50.08% 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 -8.3% move in ETSY INC. COMMON STOCK $ETSY

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Quantchabot has detected a promising Bear Call Spread trade opportunity for ETSY INC. COMMON STOCK (ETSY) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ETSY was recently trading at $80.72 and has an implied volatility of 79.51% for this period. Based on an analysis of the options available for ETSY expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $61.17-$80.78 at expiration. In this scenario, the average linear return for the trade would be 28.57%.

Big -8.34% Change: After closing the last trading session at $88.06, ETSY INC. COMMON STOCK opened today at $85.05 and has reached a low of $80.06.

Trade approach: A movement as big as -8.34% is a significantly bearish indicator, so this trade is designed to be profitable if ETSY maintains its current direction and does not revert back to pricing on the bullish side of $80.72 on 1-Jul-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 ETSY INC. COMMON STOCK closes at or below $81.02 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 50.43% 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 ROCKWELL AUTOMATION $ROK

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Quantchabot has detected a promising Bear Call Spread trade opportunity for ROCKWELL AUTOMATION (ROK) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ROK was recently trading at $196.66 and has an implied volatility of 36.66% for this period. Based on an analysis of the options available for ROK expiring on 15-Jul-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $169.95-$196.85 at expiration. In this scenario, the average linear return for the trade would be 31.37%.

52 week low: ROCKWELL AUTOMATION recently reached a new 52-week low at $195.22. ROK had traded in the range $197.10-$354.99 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 ROK maintains its current direction and does not revert back to pricing on the bullish side of $196.66 on 15-Jul-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 ROCKWELL AUTOMATION closes at or below $197.40 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.76% 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 -10.1% move in CHEWY INC $CHWY

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Quantchabot has detected a promising Bear Call Spread trade opportunity for CHEWY INC (CHWY) for the 27-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CHWY was recently trading at $24.86 and has an implied volatility of 101.57% for this period. Based on an analysis of the options available for CHWY expiring on 27-May-2022, there is a 34.35% likelihood that the underlying will close within the analyzed range of $21.08-$24.86 at expiration. In this scenario, the average linear return for the trade would be 25.50%.

Big -10.09% Change: After closing the last trading session at $27.65, CHEWY INC opened today at $26.86 and has reached a low of $24.61.

Trade approach: A movement as big as -10.09% is a significantly bearish indicator, so this trade is designed to be profitable if CHWY maintains its current direction and does not revert back to pricing on the bullish side of $24.86 on 27-May-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 CHEWY INC closes at or below $24.87 on 27-May-2022. Based on our risk-neutral analysis, there is a 50.06% 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.