The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for TESLA INC. () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
TSLA was recently trading at $356.00 and has an implied volatility of 37.32% for this period. Based on an analysis of the options available for TSLA expiring on 19-Jan-2018, there is a 41.51% likelihood that the underlying will close within the analyzed range of $245.52-$356.09 at expiration. In this scenario, the average linear return for the trade would be 81.98%.
Price target: Zacks Research has updated their six-month price target for TSLA to $272.80. This price target is a consensus price created from the price targets published by 10 participating analysts whose targets ranged from $155.00 to $375.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for TSLA has been updated to 2.87, which indicates a hold consensus from analysts. Sentiment has moved from 3.13 to 3.13 to 3.00 over the past three months.
Trade approach: The difference between the current price for TSLA and the mean price target is $63.50, which represents a 23.37% move (53.09% annualized). Since the 180-day implied volatility for TSLA is 38.69%, a bearish strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this bearish strategy, the trade would be profitable if TESLA INC. closed at or below $359.10 on 19-Jan-2018. Based on our analysis, there is a 49.94% 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 8/7/2017 1:04:20 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.