The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for APACHE () for the 25-Aug-2017 expiration period. You can analyze the opportunity in depth over at the .
APA was recently trading at $42.41 and has an implied volatility of 30.32% for this period. Based on an analysis of the options available for APA expiring on 25-Aug-2017, there is a 35.76% likelihood that the underlying will close within the analyzed range of $42.42-$44.83 at expiration. In this scenario, the average linear return for the trade would be 66.50%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, , 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 APA 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 APACHE closed at or above $42.35 on 25-Aug-2017. Based on our analysis, there is a 52.87% 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 .
This is an automated post generated based on a market analysis of delayed data at 8/14/2017 12:07:05 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.