The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for JINKOSOLAR HOLDING () for the 18-Aug-2017 expiration period. You can analyze the opportunity in depth over at the .
JKS was recently trading at $28.02 and has an implied volatility of 60.54% for this period. Based on an analysis of the options available for JKS expiring on 18-Aug-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.09-$33.12 at expiration. In this scenario, the average linear return for the trade would be 60.70%.
52 week high: JINKOSOLAR HOLDING recently reached a new 52-week high at $28.26. JKS had traded in the range $12.72-$28.18 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if JKS maintains its current direction and does not revert back to pricing on the bearish side of $28.02 on 18-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 JINKOSOLAR HOLDING closes at or above $27.80 on 18-Aug-2017. Based on our risk-neutral analysis, there is a 52.52% 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 7/24/2017 12:29:40 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.