Category Archives: Trade Ideas

Synthetic Long Discount Alert: PROPERTY SOLUTIONS ACQUISITION CORP. COMMON STOCK $PSAC trading at a 13.98% discount for the 21-Jan-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for PROPERTY SOLUTIONS ACQUISITION CORP. COMMON STOCK (PSAC) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PSAC was recently trading at $11.80 and has an implied volatility of 73.41% for this period. Based on an analysis of the options available for PSAC expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $6.30-$22.18 at expiration. In this scenario, the average linear return for the trade would be 54.76%.

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 $12.50, which is already $0.70 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 $2.35 per share. The final position can be considered as having a discount of $1.65 per share over the underlying price of $11.80 for a 13.98% 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 ROYAL BANK OF CANADA. $RY

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ROYAL BANK OF CANADA. (RY) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RY was recently trading at $95.03 and has an implied volatility of 12.34% for this period. Based on an analysis of the options available for RY expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $95.04-$98.05 at expiration. In this scenario, the average linear return for the trade would be 19.05%.

52 week high: ROYAL BANK OF CANADA. recently reached a new 52-week high at $95.21. RY had traded in the range $57.11-$95.14 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 RY maintains its current direction and does not revert back to pricing on the bearish side of $95.03 on 21-May-2021. 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 ROYAL BANK OF CANADA. closes at or above $94.20 on 21-May-2021. Based on our risk-neutral analysis, there is a 61.14% 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 -9.5% move in F5 NETWORKS $FFIV

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Quantchabot has detected a promising Bear Call Spread trade opportunity for F5 NETWORKS (FFIV) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FFIV was recently trading at $185.94 and has an implied volatility of 25.65% for this period. Based on an analysis of the options available for FFIV expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $165.01-$185.98 at expiration. In this scenario, the average linear return for the trade would be 40.97%.

Big -9.45% Change: After closing the last trading session at $205.34, F5 NETWORKS opened today at $189.85 and has reached a low of $184.41.

Trade approach: A movement as big as -9.45% is a significantly bearish indicator, so this trade is designed to be profitable if FFIV maintains its current direction and does not revert back to pricing on the bullish side of $185.94 on 16-Jul-2021. 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 F5 NETWORKS closes at or below $186.50 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 50.93% 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: TRITERRAS INC. CLASS A ORDINARY SHARES $TRIT trading at a 11.32% discount for the 20-Jan-2023 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for TRITERRAS INC. CLASS A ORDINARY SHARES (TRIT) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TRIT was recently trading at $7.95 and has an implied volatility of 72.85% for this period. Based on an analysis of the options available for TRIT expiring on 20-Jan-2023, there is a 68.27% likelihood that the underlying will close within the analyzed range of $3.06-$20.84 at expiration. In this scenario, the average linear return for the trade would be 55.56%.

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 $7.50, which is already $0.45 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 $0.45 per share. The final position can be considered as having a discount of $0.90 per share over the underlying price of $7.95 for a 11.32% 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 UNITED PARCEL SERVICE $UPS

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Quantchabot has detected a promising Bull Put Spread trade opportunity for UNITED PARCEL SERVICE (UPS) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

UPS was recently trading at $197.04 and has an implied volatility of 21.88% for this period. Based on an analysis of the options available for UPS expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $197.09-$218.27 at expiration. In this scenario, the average linear return for the trade would be 73.94%.

52 week high: UNITED PARCEL SERVICE recently reached a new 52-week high at $197.45. UPS had traded in the range $88.85-$181.19 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 UPS maintains its current direction and does not revert back to pricing on the bearish side of $197.04 on 16-Jul-2021. 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 UNITED PARCEL SERVICE closes at or above $195.60 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 52.97% 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 -14.0% move in ENPHASE ENERGY $ENPH

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for ENPHASE ENERGY (ENPH) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ENPH was recently trading at $147.21 and has an implied volatility of 63.78% for this period. Based on an analysis of the options available for ENPH expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $115.89-$147.23 at expiration. In this scenario, the average linear return for the trade would be 59.47%.

Big -13.97% Change: After closing the last trading session at $171.10, ENPHASE ENERGY opened today at $150.36 and has reached a low of $145.72.

Trade approach: A movement as big as -13.97% is a significantly bearish indicator, so this trade is designed to be profitable if ENPH maintains its current direction and does not revert back to pricing on the bullish side of $147.21 on 18-Jun-2021. 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 ENPHASE ENERGY closes at or below $152.65 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 56.01% 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: LUCKIN COFFEE INC AMERICAN DEPOSITARY SHARES – SPO $LKNCY trading at a 13.12% discount for the 21-Jan-2022 expiration

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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for LUCKIN COFFEE INC AMERICAN DEPOSITARY SHARES – SPO (LKNCY) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LKNCY was recently trading at $8.23 and has an implied volatility of 134.16% for this period. Based on an analysis of the options available for LKNCY expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $2.61-$26.04 at expiration. In this scenario, the average linear return for the trade would be 59.66%.

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 $8.00, which is already $0.23 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 $0.85 per share. The final position can be considered as having a discount of $1.08 per share over the underlying price of $8.23 for a 13.12% 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: SPI ENERGY CO. LTD. AMERICAN DEPOSITARY SHARES $SPI trading at a 17.76% discount for the 21-Jan-2022 expiration

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Synthetic Long Stock trade opportunity for SPI ENERGY CO. LTD. AMERICAN DEPOSITARY SHARES (SPI) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SPI was recently trading at $6.87 and has an implied volatility of 105.69% for this period. Based on an analysis of the options available for SPI expiring on 21-Jan-2022, there is a 68.27% likelihood that the underlying will close within the analyzed range of $2.78-$17.03 at expiration. In this scenario, the average linear return for the trade would be 67.96%.

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 $0.63 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 $1.22 per share over the underlying price of $6.87 for a 17.76% 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 VISA $V

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Quantchabot has detected a promising Bull Call Spread trade opportunity for VISA (V) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

V was recently trading at $234.56 and has an implied volatility of 20.89% for this period. Based on an analysis of the options available for V expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $234.62-$258.62 at expiration. In this scenario, the average linear return for the trade would be 72.57%.

52 week high: VISA recently reached a new 52-week high at $236.27. V had traded in the range $168.55-$232.95 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 V maintains its current direction and does not revert back to pricing on the bearish side of $234.56 on 16-Jul-2021. 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 VISA closes at or above $233.25 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 52.39% 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 -11.2% move in PINTEREST INC $PINS

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Quantchabot has detected a promising Bear Put Spread trade opportunity for PINTEREST INC (PINS) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PINS was recently trading at $68.90 and has an implied volatility of 51.11% for this period. Based on an analysis of the options available for PINS expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $56.88-$68.91 at expiration. In this scenario, the average linear return for the trade would be 60.95%.

Big -11.19% Change: After closing the last trading session at $77.58, PINTEREST INC opened today at $69.19 and has reached a low of $67.00.

Trade approach: A movement as big as -11.19% is a significantly bearish indicator, so this trade is designed to be profitable if PINS maintains its current direction and does not revert back to pricing on the bullish side of $68.90 on 18-Jun-2021. 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 PINTEREST INC closes at or below $69.20 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 50.87% 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.