Category Archives: Trade Ideas

Big Gainer Alert: Trading today’s 9.9% move in DISCOVER FINANCIAL $DFS

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for DISCOVER FINANCIAL (DFS) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DFS was recently trading at $48.46 and has an implied volatility of 60.99% for this period. Based on an analysis of the options available for DFS expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $48.47-$60.92 at expiration. In this scenario, the average linear return for the trade would be 58.13%.

Big 9.94% Change: After closing the last trading session at $44.08, DISCOVER FINANCIAL opened today at $47.27 and has reached a high of $49.20.

Trade approach: A movement as big as 9.94% is a significantly bullish indicator, so this trade is designed to be profitable if DFS maintains its current direction and does not revert back to pricing on the bearish side of $48.46 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 DISCOVER FINANCIAL closes at or above $47.80 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.43% 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.

Big Gainer Alert: Trading today’s 7.0% move in INTERACTIVE BROKERS GROUP $IBKR

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

IBKR was recently trading at $43.38 and has an implied volatility of 38.22% for this period. Based on an analysis of the options available for IBKR expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $43.29-$49.96 at expiration. In this scenario, the average linear return for the trade would be 52.32%.

Big 7.03% Change: After closing the last trading session at $40.53, INTERACTIVE BROKERS GROUP opened today at $41.44 and has reached a high of $43.47.

Trade approach: A movement as big as 7.03% is a significantly bullish indicator, so this trade is designed to be profitable if IBKR maintains its current direction and does not revert back to pricing on the bearish side of $43.38 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 INTERACTIVE BROKERS GROUP closes at or above $43.10 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 51.23% 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 7.2% move in BARCLAYS $BCS

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

BCS was recently trading at $5.83 and has an implied volatility of 57.75% for this period. Based on an analysis of the options available for BCS expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $5.83-$7.24 at expiration. In this scenario, the average linear return for the trade would be 40.85%.

Big 7.17% Change: After closing the last trading session at $5.44, BARCLAYS opened today at $5.88 and has reached a high of $5.92.

Trade approach: A movement as big as 7.17% 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 $5.83 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 BARCLAYS closes at or above $5.70 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 54.19% 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.

Big Gainer Alert: Trading today’s 7.1% move in HDFC BANK $HDB

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Quantchabot has detected a promising Bull Put Spread trade opportunity for HDFC BANK (HDB) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HDB was recently trading at $40.27 and has an implied volatility of 43.99% for this period. Based on an analysis of the options available for HDB expiring on 19-Jun-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $40.27-$45.01 at expiration. In this scenario, the average linear return for the trade would be 29.87%.

Big 7.10% Change: After closing the last trading session at $37.60, HDFC BANK opened today at $39.76 and has reached a high of $40.55.

Trade approach: A movement as big as 7.10% is a significantly bullish indicator, so this trade is designed to be profitable if HDB maintains its current direction and does not revert back to pricing on the bearish side of $40.27 on 19-Jun-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 HDFC BANK closes at or above $38.85 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 62.70% 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.

StockTwits Trending Alert: Trading recent interest in KOHL’S $KSS

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Quantchabot has detected a promising Bull Put Spread trade opportunity for KOHL’S (KSS) for the 5-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KSS was recently trading at $21.30 and has an implied volatility of 83.71% for this period. Based on an analysis of the options available for KSS expiring on 5-Jun-2020, there is a 34.22% likelihood that the underlying will close within the analyzed range of $21.30-$24.35 at expiration. In this scenario, the average linear return for the trade would be 57.97%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, KOHL’S 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 KSS 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 KOHL’S closed at or above $21.20 on 5-Jun-2020. Based on our analysis, there is a 51.42% 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 BOSTON BEER COMPANY $SAM

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Quantchabot has detected a promising Bull Put 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 $518.11 and has an implied volatility of 39.25% for this period. Based on an analysis of the options available for SAM expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $518.24-$600.40 at expiration. In this scenario, the average linear return for the trade would be 44.22%.

52 week high: BOSTON BEER COMPANY recently reached a new 52-week high at $534.90. SAM had traded in the range $290.02-$533.59 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 $518.11 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 $516.00 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 51.17% 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: FRONTLINE $FRO trading at a 10.23% discount for the 20-Nov-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for FRONTLINE (FRO) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FRO was recently trading at $8.80 and has an implied volatility of 80.42% for this period. Based on an analysis of the options available for FRO expiring on 20-Nov-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $5.03-$15.44 at expiration. In this scenario, the average linear return for the trade would be 40.80%.

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 $9.00, which is already $0.20 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 $1.10 per share. The final position can be considered as having a discount of $0.90 per share over the underlying price of $8.80 for a 10.23% 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 CROWDSTRIKE HOLDINGS INC. CLASS A COMMON STOCK $CRWD

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Quantchabot has detected a promising Bear Put Spread trade opportunity for CROWDSTRIKE HOLDINGS INC. CLASS A COMMON STOCK (CRWD) for the 29-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CRWD was recently trading at $73.61 and has an implied volatility of 65.30% for this period. Based on an analysis of the options available for CRWD expiring on 29-May-2020, there is a 34.16% likelihood that the underlying will close within the analyzed range of $69.86-$73.61 at expiration. In this scenario, the average linear return for the trade would be 61.69%.

Big -7.23% Change: After closing the last trading session at $79.35, CROWDSTRIKE HOLDINGS INC. CLASS A COMMON STOCK opened today at $79.00 and has reached a low of $71.51.

Trade approach: A movement as big as -7.23% is a significantly bearish indicator, so this trade is designed to be profitable if CRWD maintains its current direction and does not revert back to pricing on the bullish side of $73.61 on 29-May-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 CROWDSTRIKE HOLDINGS INC. CLASS A COMMON STOCK closes at or below $73.80 on 29-May-2020. Based on our risk-neutral analysis, there is a 51.96% 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: SMILEDIRECTCLUB INC. $SDC trading at a 11.96% discount for the 15-Jan-2021 expiration

Quantcha now offering unlimited commission-free options trading.

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

SDC was recently trading at $7.61 and has an implied volatility of 109.32% for this period. Based on an analysis of the options available for SDC expiring on 15-Jan-2021, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.19-$18.31 at expiration. In this scenario, the average linear return for the trade would be 49.97%.

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 put position is opened at a strike of $8.00, which is already $0.39 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 $1.30 per share. The final position can be considered as having a discount of $0.91 per share over the underlying price of $7.61 for a 11.96% 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 MERSANA THERAPEUTICS INC. COMMON STOCK $MRSN

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for MERSANA THERAPEUTICS INC. COMMON STOCK (MRSN) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MRSN was recently trading at $14.28 and has an implied volatility of 136.14% for this period. Based on an analysis of the options available for MRSN expiring on 19-Jun-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $10.12-$14.28 at expiration. In this scenario, the average linear return for the trade would be 55.20%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, MERSANA THERAPEUTICS 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 MRSN 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 MERSANA THERAPEUTICS INC. COMMON STOCK closed at or below $14.65 on 19-Jun-2020. Based on our analysis, there is a 52.95% 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.