The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for MONSANTO COMPANY () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
MON was recently trading at $116.51 and has an implied volatility of 13.24% for this period. Based on an analysis of the options available for MON expiring on 19-Jan-2018, there is a 45.26% likelihood that the underlying will close within the analyzed range of $116.53-$136.88 at expiration. In this scenario, the average linear return for the trade would be 33.47%.
Price target: Zacks Research has updated their six-month price target for MON to $124.44. This price target is a consensus price created from the price targets published by 8 participating analysts whose targets ranged from $107.50 to $128.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for MON has been updated to 2.2, which indicates a buy consensus from analysts. Sentiment has moved from 1.80 to 1.80 to 1.80 over the past three months.
Trade approach: The difference between the current price for MON and the mean price target is $11.49, which represents a 6.80% move (14.28% annualized). Since the 180-day implied volatility for MON is 13.45%, 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 MONSANTO COMPANY closed at or above $115.90 on 19-Jan-2018. Based on our analysis, there is a 52.70% 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 7/14/2017 10:30:12 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.