The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for E.I DU PONT DE NEMOURS () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
DD was recently trading at $80.99 and has an implied volatility of 19.11% for this period. Based on an analysis of the options available for DD expiring on 19-Jan-2018, there is a 42.25% likelihood that the underlying will close within the analyzed range of $80.99-$97.49 at expiration. In this scenario, the average linear return for the trade would be 46.28%.
Price target: Zacks Research has updated their six-month price target for DD to $88.63. This price target is a consensus price created from the price targets published by 8 participating analysts whose targets ranged from $78.00 to $96.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for DD has been updated to 2, which indicates a buy consensus from analysts. Sentiment has moved from 2.00 to 2.00 to 2.00 over the past three months.
Trade approach: The difference between the current price for DD and the mean price target is $8.01, which represents a 9.43% move (20.04% annualized). Since the 180-day implied volatility for DD is 20.25%, 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 E.I DU PONT DE NEMOURS closed at or above $80.58 on 19-Jan-2018. Based on our analysis, there is a 52.67% 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 10:26:46 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.