The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for UNITED TECHNOLOGIES () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
UTX was recently trading at $118.69 and has an implied volatility of 12.77% for this period. Based on an analysis of the options available for UTX expiring on 19-Jan-2018, there is a 41.91% likelihood that the underlying will close within the analyzed range of $118.69-$137.08 at expiration. In this scenario, the average linear return for the trade would be 64.20%.
Price target: Zacks Research has updated their six-month price target for UTX to $124.62. This price target is a consensus price created from the price targets published by 13 participating analysts whose targets ranged from $102.00 to $140.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for UTX has been updated to 2.28, which indicates a buy consensus from analysts. Sentiment has moved from 2.28 to 2.28 to 2.28 over the past three months.
Trade approach: The difference between the current price for UTX and the mean price target is $6.31, which represents a 4.99% move (10.38% annualized). Since the 180-day implied volatility for UTX is 14.16%, a bullish strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this bullish strategy, the trade would be profitable if UNITED TECHNOLOGIES closed at or above $118.00 on 19-Jan-2018. Based on our analysis, there is a 51.24% 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 7/28/2017 9:37:01 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.