The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for CARNIVAL () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
CCL was recently trading at $66.98 and has an implied volatility of 19.31% for this period. Based on an analysis of the options available for CCL expiring on 19-Jan-2018, there is a 51.37% likelihood that the underlying will close within the analyzed range of $59.86-$73.17 at expiration. In this scenario, the average linear return for the trade would be 43.58%.
Price target: Zacks Research has updated their six-month price target for CCL to $66.52. This price target is a consensus price created from the price targets published by 12 participating analysts whose targets ranged from $51.00 to $80.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for CCL has been updated to 2.02, which indicates a buy consensus from analysts. Sentiment has moved from 2.09 to 2.09 to 2.09 over the past three months.
Trade approach: The difference between the current price for CCL and the mean price target is $0.02, which represents a 0.69% move (1.41% annualized). Since the 180-day implied volatility for CCL is 20.44%, a neutral range-bound strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this neutral range-bound strategy, the trade would be profitable if CARNIVAL closed in the range $59.05-$73.45 on 19-Jan-2018. Based on our analysis, there is a 54.97% likelihood of this return. The maximum return for this trade would be 52.67% if CARNIVAL closed in the range $62.50-$70.00.
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 7/27/2017 10:29:29 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.