The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for ZAGG () for the 16-Feb-2018 expiration period. You can analyze the opportunity in depth over at the .
ZAGG was recently trading at $20.43 and has an implied volatility of 59.61% for this period. Based on an analysis of the options available for ZAGG expiring on 16-Feb-2018, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.54-$25.03 at expiration. In this scenario, the average linear return for the trade would be 57.36%.
Big 7.78% Change: After closing the last trading session at $18.95, ZAGG opened today at $19.30 and has reached a high of $20.81.
Trade approach: A movement as big as 7.78% is a significantly bullish indicator, so this trade is designed to be profitable if ZAGG maintains its current direction and does not revert back to pricing on the bearish side of $20.43 on 16-Feb-2018. 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 ZAGG closes at or above $20.25 on 16-Feb-2018. Based on our risk-neutral analysis, there is a 52.83% 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 1/3/2018 3:17:52 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.