The automated Quantcha Trade Ideas Service has detected a promising
ORAN was recently trading at $15.13 and has an implied volatility of 21.78% for this period. Based on an analysis of the options available for ORAN expiring on 18-Aug-2017, there is a 17.74% likelihood that the underlying will close within the analyzed range of $17.64-$21.56 at expiration. In this scenario, the average linear return for the trade would be 283.33%.
Price target: Zacks Research has updated their six-month price target for ORAN to $19.60. This price target is a consensus price created from the price targets published by 1 participating analysts whose targets ranged from $19.60 to $19.60.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for ORAN has been updated to 1, which indicates a strong buy consensus from analysts. Sentiment has moved from 1.67 to 1.67 to 1.67 over the past three months.
Trade approach: The difference between the current price for ORAN and the mean price target is $4.47, which represents a 29.57% move (69.08% annualized). Since the 180-day implied volatility for ORAN is 25.52%, 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 ORANGE closed at or above $16.20 on 18-Aug-2017. Based on our analysis, there is a 36.26% 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.
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This is an automated post generated based on a market analysis of delayed data at 2/28/2017 12:21:06 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.