The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for MASTERCARD () for the 4-Aug-2017 expiration period. You can analyze the opportunity in depth over at the .
MA was recently trading at $129.43 and has an implied volatility of 21.51% for this period. Based on an analysis of the options available for MA expiring on 4-Aug-2017, there is a 31.83% likelihood that the underlying will close within the analyzed range of $124.91-$129.42 at expiration. In this scenario, the average linear return for the trade would be 79.46%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, , indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in MA on StockTwits appears to be moderately negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bearish strategy, the trade would be profitable if MASTERCARD closed at or below $129.47 on 4-Aug-2017. Based on our analysis, there is a 48.11% 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 7/24/2017 10:28:02 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.