The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for CONOCOPHILLIPS () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
COP was recently trading at $43.15 and has an implied volatility of 23.73% for this period. Based on an analysis of the options available for COP expiring on 19-Jan-2018, there is a 16.32% likelihood that the underlying will close within the analyzed range of $50.70-$61.97 at expiration. In this scenario, the average linear return for the trade would be 476.26%.
Price target: Zacks Research has updated their six-month price target for COP to $56.33. This price target is a consensus price created from the price targets published by 12 participating analysts whose targets ranged from $45.00 to $65.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for COP has been updated to 1.56, which indicates a buy consensus from analysts. Sentiment has moved from 1.47 to 1.47 to 1.47 over the past three months.
Trade approach: The difference between the current price for COP and the mean price target is $15.35, which represents a 30.55% move (71.70% annualized). Since the 180-day implied volatility for COP is 24.38%, 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 CONOCOPHILLIPS closed at or above $50.62 on 19-Jan-2018. Based on our analysis, there is a 18.52% 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 12:13:18 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.