The automated Quantcha Trade Ideas Service has detected a promising
HAL was recently trading at $48.01 and has an implied volatility of 26.56% for this period. Based on an analysis of the options available for HAL expiring on 20-Oct-2017, there is a 21.17% likelihood that the underlying will close within the analyzed range of $54.77-$66.94 at expiration. In this scenario, the average linear return for the trade would be 309.81%.
Price target: Zacks Research has updated their six-month price target for HAL to $60.85. This price target is a consensus price created from the price targets published by 20 participating analysts whose targets ranged from $38.00 to $72.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for HAL has been updated to 1.35, which indicates a strong buy consensus from analysts. Sentiment has moved from 1.38 to 1.31 to 1.33 over the past three months.
Trade approach: The difference between the current price for HAL and the mean price target is $15.49, which represents a 26.74% move (61.70% annualized). Since the 180-day implied volatility for HAL is 27.52%, 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 HALLIBURTON closed at or above $54.50 on 20-Oct-2017. Based on our analysis, there is a 27.69% 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.
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This is an automated post generated based on a market analysis of delayed data at 3/28/2017 12:22:07 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.