The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for FRONTIER COMMUNICATIONS () for the 15-Sep-2017 expiration period. You can analyze the opportunity in depth over at the .
FTR was recently trading at $15.84 and has an implied volatility of 58.05% for this period. Based on an analysis of the options available for FTR expiring on 15-Sep-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.86-$15.30 at expiration. In this scenario, the average linear return for the trade would be 57.72%.
Big -7.12% Change: After closing the last trading session at $17.05, FRONTIER COMMUNICATIONS opened today at $16.58 and has reached a low of $15.75.
Trade approach: A movement as big as -7.12% is a significantly bearish indicator, so this trade is designed to be profitable if FTR maintains its current direction and does not revert back to pricing on the bullish side of $15.84 on 15-Sep-2017. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if FRONTIER COMMUNICATIONS closes at or below $15.55 on 15-Sep-2017. Based on our risk-neutral analysis, there is a 52.59% 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 8/3/2017 10:25:50 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.