The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for AMGEN () for the 4-Aug-2017 expiration period. You can analyze the opportunity in depth over at the .
AMGN was recently trading at $180.89 and has an implied volatility of 26.46% for this period. Based on an analysis of the options available for AMGN expiring on 4-Aug-2017, there is a 32.27% likelihood that the underlying will close within the analyzed range of $173.73-$180.89 at expiration. In this scenario, the average linear return for the trade would be 62.52%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, , indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in AMGN on StockTwits appears to be significantly negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bearish strategy, the trade would be profitable if AMGEN closed at or below $180.96 on 4-Aug-2017. Based on our analysis, there is a 48.50% 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 7/26/2017 9:38:10 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.