The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for WILLIAMS PARTNERS LP () for the 15-Jun-2018 expiration period. You can analyze the opportunity in depth over at the .
WPZ was recently trading at $36.94 and has an implied volatility of 13.29% for this period. Based on an analysis of the options available for WPZ expiring on 15-Jun-2018, there is a 19.15% likelihood that the underlying will close within the analyzed range of $40.50-$49.50 at expiration. In this scenario, the average linear return for the trade would be 242.83%.
Price target: Zacks Research has updated their six-month price target for WPZ to $45.00. This price target is a consensus price created from the price targets published by 9 participating analysts whose targets ranged from $43.00 to $47.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for WPZ has been updated to 1.41, which indicates a strong buy consensus from analysts. Sentiment has moved from 1.46 to 1.46 to 1.54 over the past three months.
Trade approach: The difference between the current price for WPZ and the mean price target is $8.06, which represents a 21.82% move (49.21% annualized). Since the 180-day implied volatility for WPZ is 18.39%, 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 WILLIAMS PARTNERS LP closed at or above $39.30 on 15-Jun-2018. Based on our analysis, there is a 27.00% 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 10/26/2017 1:50:33 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.