The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for TD AMERITRADE HOLDING () for the 15-Dec-2017 expiration period. You can analyze the opportunity in depth over at the .
AMTD was recently trading at $50.23 and has an implied volatility of 20.23% for this period. Based on an analysis of the options available for AMTD expiring on 15-Dec-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $50.26-$54.44 at expiration. In this scenario, the average linear return for the trade would be 48.15%.
52 week high: TD AMERITRADE HOLDING recently reached a new 52-week high at $50.94. AMTD had traded in the range $30.32-$47.41 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 AMTD maintains its current direction and does not revert back to pricing on the bearish side of $50.23 on 15-Dec-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 TD AMERITRADE HOLDING closes at or above $49.35 on 15-Dec-2017. Based on our risk-neutral analysis, there is a 59.09% 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 10/27/2017 12:32:12 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.