The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for SCHLUMBERGER () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
SLB was recently trading at $66.78 and has an implied volatility of 18.66% for this period. Based on an analysis of the options available for SLB expiring on 19-Jan-2018, there is a 18.54% likelihood that the underlying will close within the analyzed range of $75.20-$91.91 at expiration. In this scenario, the average linear return for the trade would be 410.09%.
Price target: Zacks Research has updated their six-month price target for SLB to $83.56. This price target is a consensus price created from the price targets published by 18 participating analysts whose targets ranged from .00 to $107.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for SLB has been updated to 1.89, which indicates a buy consensus from analysts. Sentiment has moved from 1.48 to 1.68 to 1.68 over the past three months.
Trade approach: The difference between the current price for SLB and the mean price target is $14.22, which represents a 25.12% move (57.53% annualized). Since the 180-day implied volatility for SLB is 20.04%, 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 SCHLUMBERGER closed at or above $74.08 on 19-Jan-2018. Based on our analysis, there is a 22.84% 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 12:11:46 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.