Category Archives: Trade Ideas

Big Gainer Alert: Trading today’s 7.9% move in BED BATH & BEYOND $BBBY

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for BED BATH & BEYOND (BBBY) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BBBY was recently trading at $8.34 and has an implied volatility of 97.24% for this period. Based on an analysis of the options available for BBBY expiring on 18-Sep-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.34-$12.62 at expiration. In this scenario, the average linear return for the trade would be 118.53%.

Big 7.90% Change: After closing the last trading session at $7.72, BED BATH & BEYOND opened today at $7.62 and has reached a high of $8.34.

Trade approach: A movement as big as 7.90% is a significantly bullish indicator, so this trade is designed to be profitable if BBBY maintains its current direction and does not revert back to pricing on the bearish side of $8.34 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 BED BATH & BEYOND closes at or above $7.82 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 56.15% 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: WORKHORSE GROUP INC. COMMON STOCK $WKHS trading at a 10.33% discount for the 15-Jan-2021 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for WORKHORSE GROUP INC. COMMON STOCK (WKHS) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WKHS was recently trading at $16.28 and has an implied volatility of 165.20% for this period. Based on an analysis of the options available for WKHS expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $5.03-$52.94 at expiration. In this scenario, the average linear return for the trade would be 53.67%.

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 $16.00, which is already $0.28 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 $1.40 per share. The final position can be considered as having a discount of $1.68 per share over the underlying price of $16.28 for a 10.33% 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 LITHIA MOTORS $LAD

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

LAD was recently trading at $165.31 and has an implied volatility of 63.51% for this period. Based on an analysis of the options available for LAD expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $165.31-$175.70 at expiration. In this scenario, the average linear return for the trade would be 12.36%.

52 week high: LITHIA MOTORS recently reached a new 52-week high at $165.39. LAD had traded in the range $55.74-$165.26 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 LAD maintains its current direction and does not revert back to pricing on the bearish side of $165.31 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 LITHIA MOTORS closes at or above $163.35 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 57.77% 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: ALTIMMUNE INC. COMMON STOCK $ALT trading at a 14.70% discount for the 18-Dec-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for ALTIMMUNE INC. COMMON STOCK (ALT) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ALT was recently trading at $30.01 and has an implied volatility of 183.02% for this period. Based on an analysis of the options available for ALT expiring on 18-Dec-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $9.03-$99.93 at expiration. In this scenario, the average linear return for the trade would be 64.86%.

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 $30.00, which is already $0.01 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 $4.40 per share. The final position can be considered as having a discount of $4.41 per share over the underlying price of $30.01 for a 14.70% 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 -7.2% move in QUTOUTIAO INC. AMERICAN DEPOSITARY SHARES $QTT

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Quantchabot has detected a promising Covered Put trade opportunity for QUTOUTIAO INC. AMERICAN DEPOSITARY SHARES (QTT) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

QTT was recently trading at $3.40 and has an implied volatility of 146.35% for this period. Based on an analysis of the options available for QTT expiring on 21-Aug-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.11-$3.40 at expiration. In this scenario, the average linear return for the trade would be 46.80%.

Big -7.20% Change: After closing the last trading session at $3.66, QUTOUTIAO INC. AMERICAN DEPOSITARY SHARES opened today at $3.61 and has reached a low of $3.35.

Trade approach: A movement as big as -7.20% is a significantly bearish indicator, so this trade is designed to be profitable if QTT maintains its current direction and does not revert back to pricing on the bullish side of $3.40 on 21-Aug-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 QUTOUTIAO INC. AMERICAN DEPOSITARY SHARES closes at or below $3.54 on 21-Aug-2020. Based on our risk-neutral analysis, there is a 53.46% 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 8.8% move in K12 $LRN

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Quantchabot has detected a promising Bull Call Spread trade opportunity for K12 (LRN) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LRN was recently trading at $38.16 and has an implied volatility of 113.81% for this period. Based on an analysis of the options available for LRN expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $38.16-$42.57 at expiration. In this scenario, the average linear return for the trade would be 81.20%.

Big 8.78% Change: After closing the last trading session at $35.08, K12 opened today at $35.69 and has reached a high of $38.70.

Trade approach: A movement as big as 8.78% is a significantly bullish indicator, so this trade is designed to be profitable if LRN maintains its current direction and does not revert back to pricing on the bearish side of $38.16 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 K12 closes at or above $37.95 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.02% 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: BLINK CHARGING CO. COMMON STOCK $BLNK trading at a 13.46% discount for the 18-Dec-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for BLINK CHARGING CO. COMMON STOCK (BLNK) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BLNK was recently trading at $5.72 and has an implied volatility of 155.69% for this period. Based on an analysis of the options available for BLNK expiring on 18-Dec-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $2.06-$15.92 at expiration. In this scenario, the average linear return for the trade would be 66.40%.

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 $0.72 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 $0.05 per share. The final position can be considered as having a discount of $0.77 per share over the underlying price of $5.72 for a 13.46% 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.

52-Week High Alert: Trading today’s movement in BOSTON BEER COMPANY $SAM

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Quantchabot has detected a promising Bull Call Spread trade opportunity for BOSTON BEER COMPANY (SAM) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SAM was recently trading at $604.44 and has an implied volatility of 41.71% for this period. Based on an analysis of the options available for SAM expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $604.45-$629.14 at expiration. In this scenario, the average linear return for the trade would be 46.80%.

52 week high: BOSTON BEER COMPANY recently reached a new 52-week high at $604.44. SAM had traded in the range $290.02-$603.96 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 SAM maintains its current direction and does not revert back to pricing on the bearish side of $604.44 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 BOSTON BEER COMPANY closes at or above $603.10 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.23% 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 8.6% move in CYTOKINETICS INCORPORATED COM $CYTK

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Quantchabot has detected a promising Bull Call Spread trade opportunity for CYTOKINETICS INCORPORATED COM (CYTK) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CYTK was recently trading at $26.09 and has an implied volatility of 106.42% for this period. Based on an analysis of the options available for CYTK expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $26.09-$28.90 at expiration. In this scenario, the average linear return for the trade would be 53.85%.

Big 8.62% Change: After closing the last trading session at $24.02, CYTOKINETICS INCORPORATED COM opened today at $24.53 and has reached a high of $26.10.

Trade approach: A movement as big as 8.62% is a significantly bullish indicator, so this trade is designed to be profitable if CYTK maintains its current direction and does not revert back to pricing on the bearish side of $26.09 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 CYTOKINETICS INCORPORATED COM closes at or above $25.65 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 56.62% 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 MAXIM INTEGRATED PRODUCTS $MXIM

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Quantchabot has detected a promising Bull Put Spread trade opportunity for MAXIM INTEGRATED PRODUCTS (MXIM) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MXIM was recently trading at $69.05 and has an implied volatility of 48.57% for this period. Based on an analysis of the options available for MXIM expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $69.05-$72.35 at expiration. In this scenario, the average linear return for the trade would be 20.86%.

52 week high: MAXIM INTEGRATED PRODUCTS recently reached a new 52-week high at $69.20. MXIM had traded in the range $41.93-$65.73 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 MXIM maintains its current direction and does not revert back to pricing on the bearish side of $69.05 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 MAXIM INTEGRATED PRODUCTS closes at or above $69.00 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 50.63% 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.