The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for SIMON PROPERTY GROUP () for the 20-Apr-2018 expiration period. You can analyze the opportunity in depth over at the .
SPG was recently trading at $163.74 and has an implied volatility of 20.21% for this period. Based on an analysis of the options available for SPG expiring on 20-Apr-2018, there is a 30.49% likelihood that the underlying will close within the analyzed range of $171.06-$209.08 at expiration. In this scenario, the average linear return for the trade would be 129.31%.
Price target: Zacks Research has updated their six-month price target for SPG to $190.07. This price target is a consensus price created from the price targets published by 14 participating analysts whose targets ranged from $158.00 to $240.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for SPG has been updated to 1.6, which indicates a buy consensus from analysts. Sentiment has moved from 1.76 to 1.60 to 1.60 over the past three months.
Trade approach: The difference between the current price for SPG and the mean price target is $26.77, which represents a 16.08% move (35.32% annualized). Since the 180-day implied volatility for SPG is 23.41%, 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 SIMON PROPERTY GROUP closed at or above $170.70 on 20-Apr-2018. Based on our analysis, there is a 36.48% 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 11/10/2017 10:31:13 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.