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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.

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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.

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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.

Quantcha now offering unlimited commission-free options trading.

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.

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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.

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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.

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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.

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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.

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.

Quantcha now offering unlimited commission-free options trading.

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.