The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for FOSSIL GROUP INC. COMMON STOC () for the 4-Aug-2017 expiration period. You can analyze the opportunity in depth over at the .
FOSL was recently trading at $11.36 and has an implied volatility of 62.93% for this period. Based on an analysis of the options available for FOSL expiring on 4-Aug-2017, there is a 34.15% likelihood that the underlying will close within the analyzed range of $11.37-$12.02 at expiration. In this scenario, the average linear return for the trade would be 15.79%.
Big 7.17% Change: After closing the last trading session at $10.60, FOSSIL GROUP INC. COMMON STOC opened today at $10.61 and has reached a high of $11.38.
Trade approach: A movement as big as 7.17% is a significantly bullish indicator, so this trade is designed to be profitable if FOSL maintains its current direction and does not revert back to pricing on the bearish side of $11.36 on 4-Aug-2017. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if FOSSIL GROUP INC. COMMON STOC closes at or above $11.35 on 4-Aug-2017. Based on our risk-neutral analysis, there is a 51.49% 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 11:04:09 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.