Category Archives: Trade Ideas

Big Loser Alert: Trading today’s -7.9% move in IQIYI INC. AMERICAN DEPOSITARY SHARES $IQ

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Quantchabot has detected a promising Bear Call Spread trade opportunity for IQIYI INC. AMERICAN DEPOSITARY SHARES (IQ) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

IQ was recently trading at $16.27 and has an implied volatility of 61.18% for this period. Based on an analysis of the options available for IQ expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $12.74-$16.27 at expiration. In this scenario, the average linear return for the trade would be 54.31%.

Big -7.87% Change: After closing the last trading session at $17.66, IQIYI INC. AMERICAN DEPOSITARY SHARES opened today at $17.63 and has reached a low of $16.16.

Trade approach: A movement as big as -7.87% is a significantly bearish indicator, so this trade is designed to be profitable if IQ maintains its current direction and does not revert back to pricing on the bullish side of $16.27 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 bearish strategy, the trade would be profitable if IQIYI INC. AMERICAN DEPOSITARY SHARES closes at or below $16.92 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 56.32% 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.

52-Week High Alert: Trading today’s movement in ASCENDIS PHARMA A/S AMERICAN D $ASND

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Quantchabot has detected a promising Bull Call Spread trade opportunity for ASCENDIS PHARMA A/S AMERICAN D (ASND) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ASND was recently trading at $144.56 and has an implied volatility of 44.20% for this period. Based on an analysis of the options available for ASND expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $144.60-$172.55 at expiration. In this scenario, the average linear return for the trade would be 26.53%.

52 week high: ASCENDIS PHARMA A/S AMERICAN D recently reached a new 52-week high at $150.00. ASND had traded in the range $90.06-$148.70 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 ASND maintains its current direction and does not revert back to pricing on the bearish side of $144.56 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 ASCENDIS PHARMA A/S AMERICAN D closes at or above $144.40 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 50.31% 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 ENTEGRIS $ENTG

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

ENTG was recently trading at $58.82 and has an implied volatility of 41.63% for this period. Based on an analysis of the options available for ENTG expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $58.84-$69.49 at expiration. In this scenario, the average linear return for the trade would be 40.36%.

52 week high: ENTEGRIS recently reached a new 52-week high at $59.34. ENTG had traded in the range $33.75-$59.05 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 ENTG maintains its current direction and does not revert back to pricing on the bearish side of $58.82 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 ENTEGRIS closes at or above $58.50 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 51.37% 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 11.71% discount for the 16-Oct-2020 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for FRONTLINE (FRO) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FRO was recently trading at $7.82 and has an implied volatility of 86.23% for this period. Based on an analysis of the options available for FRO expiring on 16-Oct-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $4.51-$13.59 at expiration. In this scenario, the average linear return for the trade would be 45.97%.

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 $0.18 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 $0.92 per share over the underlying price of $7.82 for a 11.71% 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 Gainer Alert: Trading today’s 8.6% move in TECHNICFMC PLC $FTI

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

FTI was recently trading at $7.58 and has an implied volatility of 83.59% for this period. Based on an analysis of the options available for FTI expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.58-$10.59 at expiration. In this scenario, the average linear return for the trade would be 64.10%.

Big 8.60% Change: After closing the last trading session at $6.98, TECHNICFMC PLC opened today at $7.12 and has reached a high of $7.62.

Trade approach: A movement as big as 8.60% is a significantly bullish indicator, so this trade is designed to be profitable if FTI maintains its current direction and does not revert back to pricing on the bearish side of $7.58 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 TECHNICFMC PLC closes at or above $7.50 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 51.30% 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 10.60% 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 $6.04 and has an implied volatility of 125.77% 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 $2.32-$15.82 at expiration. In this scenario, the average linear return for the trade would be 50.21%.

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 $1.04 in the money. An out-of-the-money put at the same strike is sold to finance the call, resulting in a net debit of $0.40 per share. The final position can be considered as having a discount of $0.64 per share over the underlying price of $6.04 for a 10.60% 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 IMMUNOMEDICS $IMMU

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

IMMU was recently trading at $34.52 and has an implied volatility of 57.37% for this period. Based on an analysis of the options available for IMMU expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $34.52-$43.42 at expiration. In this scenario, the average linear return for the trade would be 57.76%.

52 week high: IMMUNOMEDICS recently reached a new 52-week high at $34.68. IMMU had traded in the range $8.80-$34.15 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 IMMU maintains its current direction and does not revert back to pricing on the bearish side of $34.52 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 IMMUNOMEDICS closes at or above $34.15 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 51.90% 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.

Big Gainer Alert: Trading today’s 7.9% move in HARLEY-DAVIDSON $HOG

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

HOG was recently trading at $23.57 and has an implied volatility of 61.24% for this period. Based on an analysis of the options available for HOG expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $23.56-$30.09 at expiration. In this scenario, the average linear return for the trade would be 56.94%.

Big 7.92% Change: After closing the last trading session at $21.84, HARLEY-DAVIDSON opened today at $22.33 and has reached a high of $23.57.

Trade approach: A movement as big as 7.92% is a significantly bullish indicator, so this trade is designed to be profitable if HOG maintains its current direction and does not revert back to pricing on the bearish side of $23.57 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 HARLEY-DAVIDSON closes at or above $23.26 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.06% 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.

Synthetic Long Discount Alert: SMILEDIRECTCLUB INC. $SDC trading at a 15.54% discount for the 15-Jan-2021 expiration

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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 $6.93 and has an implied volatility of 114.50% 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 $2.75-$17.62 at expiration. In this scenario, the average linear return for the trade would be 60.53%.

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 $7.00, which is already $0.07 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 $1.15 per share. The final position can be considered as having a discount of $1.08 per share over the underlying price of $6.93 for a 15.54% 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 TYLER TECHNOLOGIES $TYL

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

TYL was recently trading at $363.42 and has an implied volatility of 32.66% for this period. Based on an analysis of the options available for TYL expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $363.52-$414.23 at expiration. In this scenario, the average linear return for the trade would be 45.78%.

52 week high: TYLER TECHNOLOGIES recently reached a new 52-week high at $368.98. TYL had traded in the range $205.90-$354.93 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 TYL maintains its current direction and does not revert back to pricing on the bearish side of $363.42 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 TYLER TECHNOLOGIES closes at or above $360.20 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.80% 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.