The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for ENI () for the 16-Feb-2018 expiration period. You can analyze the opportunity in depth over at the .
E was recently trading at $30.57 and has an implied volatility of 13.87% for this period. Based on an analysis of the options available for E expiring on 16-Feb-2018, there is a 41.93% likelihood that the underlying will close within the analyzed range of $24.57-$30.57 at expiration. In this scenario, the average linear return for the trade would be 23.95%.
Price target: Zacks Research has updated their six-month price target for E to $27.30. This price target is a consensus price created from the price targets published by 1 participating analysts whose targets ranged from $27.30 to $27.30.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for E has been updated to 2.67, which indicates a hold consensus from analysts. Sentiment has moved from 1.00 to 1.00 to 1.00 over the past three months.
Trade approach: The difference between the current price for E and the mean price target is $3.27, which represents a 10.70% move (22.88% annualized). Since the 180-day implied volatility for E is 18.51%, a bearish strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this bearish strategy, the trade would be profitable if ENI closed at or below $31.00 on 16-Feb-2018. Based on our analysis, there is a 50.83% 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 7/20/2017 11:19:54 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.