Category Archives: Trade Ideas

Big Gainer Alert: Trading today’s 7.9% move in ELANCO ANIMAL HEALTH INC $ELAN

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ELANCO ANIMAL HEALTH INC (ELAN) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ELAN was recently trading at $25.16 and has an implied volatility of 39.56% for this period. Based on an analysis of the options available for ELAN expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $25.16-$30.04 at expiration. In this scenario, the average linear return for the trade would be 61.36%.

Big 7.92% Change: After closing the last trading session at $23.31, ELANCO ANIMAL HEALTH INC opened today at $23.74 and has reached a high of $25.16.

Trade approach: A movement as big as 7.92% is a significantly bullish indicator, so this trade is designed to be profitable if ELAN maintains its current direction and does not revert back to pricing on the bearish side of $25.16 on 16-Oct-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 ELANCO ANIMAL HEALTH INC closes at or above $24.80 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 53.26% 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 BEST BUY $BBY

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Quantchabot has detected a promising Bull Call Spread trade opportunity for BEST BUY (BBY) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BBY was recently trading at $100.54 and has an implied volatility of 33.95% for this period. Based on an analysis of the options available for BBY expiring on 21-Aug-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $100.55-$108.27 at expiration. In this scenario, the average linear return for the trade would be 63.96%.

52 week high: BEST BUY recently reached a new 52-week high at $101.58. BBY had traded in the range $48.10-$100.68 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 BBY maintains its current direction and does not revert back to pricing on the bearish side of $100.54 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 bullish strategy, the trade would be profitable if BEST BUY closes at or above $100.53 on 21-Aug-2020. Based on our risk-neutral analysis, there is a 50.09% 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 8.0% move in ADVANCED MICRO DEVICES INC. C $AMD

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ADVANCED MICRO DEVICES INC. C (AMD) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMD was recently trading at $83.90 and has an implied volatility of 55.59% for this period. Based on an analysis of the options available for AMD expiring on 18-Sep-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $83.92-$102.08 at expiration. In this scenario, the average linear return for the trade would be 98.11%.

Big 8.02% Change: After closing the last trading session at $77.67, ADVANCED MICRO DEVICES INC. C opened today at $78.03 and has reached a high of $83.92.

Trade approach: A movement as big as 8.02% is a significantly bullish indicator, so this trade is designed to be profitable if AMD maintains its current direction and does not revert back to pricing on the bearish side of $83.90 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 ADVANCED MICRO DEVICES INC. C closes at or above $83.55 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 50.89% 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 CADENCE DESIGN SYSTEMS $CDNS

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Quantchabot has detected a promising Bull Call Spread trade opportunity for CADENCE DESIGN SYSTEMS (CDNS) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CDNS was recently trading at $109.79 and has an implied volatility of 33.80% for this period. Based on an analysis of the options available for CDNS expiring on 18-Sep-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $109.81-$123.70 at expiration. In this scenario, the average linear return for the trade would be 56.16%.

52 week high: CADENCE DESIGN SYSTEMS recently reached a new 52-week high at $112.00. CDNS had traded in the range $51.39-$109.26 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 CDNS maintains its current direction and does not revert back to pricing on the bearish side of $109.79 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 CADENCE DESIGN SYSTEMS closes at or above $108.20 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 54.94% 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: EQUINOX GOLD CORP $EQX returning up to 37.74% through 15-Jan-2021

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Quantchabot has detected a promising Covered Call trade opportunity for EQUINOX GOLD CORP (EQX) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EQX was recently trading at $11.96 and has an implied volatility of 59.73% for this period. Based on an analysis of the options available for EQX expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $8.02-$17.88 at expiration. In this scenario, the average linear return for the trade would be 10.17%.

Moneyness: These options are currently 25.68% out of the money and there is a 30.13% likelihood that these options will be exercised before or at expiration.

Most upside: If EQUINOX GOLD CORP closes at or above $15.00, this trade could return up to 37.74%. Based on our analysis, there is a 28.69% 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 40.65% chance the underlying will close at or below its breakeven price of $10.89, 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.

StockTwits Trending Alert: Trading recent interest in CYBERARK SOFTWARE LTD. ORDINAR $CYBR

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Quantchabot has detected a promising Bear Call Spread trade opportunity for CYBERARK SOFTWARE LTD. ORDINAR (CYBR) for the 14-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CYBR was recently trading at $112.05 and has an implied volatility of 46.06% for this period. Based on an analysis of the options available for CYBR expiring on 14-Aug-2020, there is a 34.16% likelihood that the underlying will close within the analyzed range of $103.70-$112.06 at expiration. In this scenario, the average linear return for the trade would be 45.38%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, CYBERARK SOFTWARE LTD. ORDINAR 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 CYBR 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 CYBERARK SOFTWARE LTD. ORDINAR closed at or below $112.25 on 14-Aug-2020. Based on our analysis, there is a 50.90% 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 HOST HOTELS & RESORTS $HST

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Quantchabot has detected a promising Bull Call Spread trade opportunity for HOST HOTELS & RESORTS (HST) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HST was recently trading at $10.98 and has an implied volatility of 70.68% for this period. Based on an analysis of the options available for HST expiring on 21-Aug-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $10.98-$12.82 at expiration. In this scenario, the average linear return for the trade would be 66.64%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, HOST HOTELS & RESORTS 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 HST on StockTwits appears to be moderately positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bullish strategy, the trade would be profitable if HOST HOTELS & RESORTS closed at or above $10.60 on 21-Aug-2020. Based on our analysis, there is a 59.18% 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.

Synthetic Long Discount Alert: EASTMAN KODAK COMPANY $KODK trading at a 10.28% discount for the 15-Jan-2021 expiration

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

KODK was recently trading at $15.38 and has an implied volatility of 167.35% for this period. Based on an analysis of the options available for KODK expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $5.01-$47.33 at expiration. In this scenario, the average linear return for the trade would be 51.97%.

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 $0.38 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 $1.20 per share. The final position can be considered as having a discount of $1.58 per share over the underlying price of $15.38 for a 10.28% 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.

StockTwits Trending Alert: Trading recent interest in IRHYTHM TECHNOLOGIES INC. COMMON STOCK $IRTC

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for IRHYTHM TECHNOLOGIES INC. COMMON STOCK (IRTC) for the 21-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

IRTC was recently trading at $174.29 and has an implied volatility of 97.96% for this period. Based on an analysis of the options available for IRTC expiring on 21-Aug-2020, there is a 33.74% likelihood that the underlying will close within the analyzed range of $140.79-$173.94 at expiration. In this scenario, the average linear return for the trade would be 47.56%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, IRHYTHM TECHNOLOGIES INC. COMMON STOCK 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 IRTC 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 IRHYTHM TECHNOLOGIES INC. COMMON STOCK closed at or below $176.25 on 21-Aug-2020. Based on our analysis, there is a 52.07% 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: MEDNAX $MD returning up to 30.66% through 18-Dec-2020

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Quantchabot has detected a promising Covered Call trade opportunity for MEDNAX (MD) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MD was recently trading at $19.67 and has an implied volatility of 77.42% for this period. Based on an analysis of the options available for MD expiring on 18-Dec-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $12.27-$31.60 at expiration. In this scenario, the average linear return for the trade would be 10.20%.

Moneyness: These options are currently 14.45% out of the money and there is a 41.07% likelihood that these options will be exercised before or at expiration.

Most upside: If MEDNAX closes at or above $22.50, this trade could return up to 30.66%. Based on our analysis, there is a 38.89% 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 38.86% chance the underlying will close at or below its breakeven price of $17.22, 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.