The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for VERIZON COMMUNICATIONS () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
VZ was recently trading at $43.33 and has an implied volatility of 13.60% for this period. Based on an analysis of the options available for VZ expiring on 19-Jan-2018, there is a 29.18% likelihood that the underlying will close within the analyzed range of $45.12-$55.15 at expiration. In this scenario, the average linear return for the trade would be 177.49%.
Price target: Zacks Research has updated their six-month price target for VZ to $50.14. This price target is a consensus price created from the price targets published by 18 participating analysts whose targets ranged from $46.00 to $54.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for VZ has been updated to 2.57, which indicates a hold consensus from analysts. Sentiment has moved from 2.71 to 2.70 to 2.68 over the past three months.
Trade approach: The difference between the current price for VZ and the mean price target is $6.67, which represents a 15.70% move (34.42% annualized). Since the 180-day implied volatility for VZ is 15.38%, 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 VERIZON COMMUNICATIONS closed at or above $44.94 on 19-Jan-2018. Based on our analysis, there is a 31.40% 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 7/19/2017 11:17:17 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.