The automated Quantcha Trade Ideas Service has detected a promising
STX was recently trading at $48.30 and has an implied volatility of 26.37% for this period. Based on an analysis of the options available for STX expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $47.81-$53.72 at expiration. In this scenario, the average linear return for the trade would be 68.40%.
52 week high: SEAGATE TECHNOLOGY recently reached a new 52-week high at $48.68. STX had traded in the range $18.42-$48.53 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 STX maintains its current direction and does not revert back to pricing on the bearish side of $48.30 on 21-Apr-2017. 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 SEAGATE TECHNOLOGY closes at or above $47.71 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 50.69% 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 2/28/2017 1:22:07 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.