The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for ALPHABET INC CLASS A () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
GOOGL was recently trading at $923.59 and has an implied volatility of 21.44% for this period. Based on an analysis of the options available for GOOGL expiring on 19-Jan-2018, there is a 37.33% likelihood that the underlying will close within the analyzed range of $956.06-$1,168.51 at expiration. In this scenario, the average linear return for the trade would be 109.53%.
Price target: Zacks Research has updated their six-month price target for GOOGL to $1,062.29. This price target is a consensus price created from the price targets published by 28 participating analysts whose targets ranged from $880.00 to $1,220.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for GOOGL has been updated to 1.31, which indicates a strong buy consensus from analysts. Sentiment has moved from 1.35 to 1.25 to 1.34 over the past three months.
Trade approach: The difference between the current price for GOOGL and the mean price target is $126.41, which represents a 15.02% move (32.80% annualized). Since the 180-day implied volatility for GOOGL is 21.38%, a bullish strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this bullish strategy, the trade would be profitable if ALPHABET INC CLASS A closed at or above $954.70 on 19-Jan-2018. Based on our analysis, there is a 43.12% 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 8/11/2017 9:36:14 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.