The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for JPMORGAN CHASE () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
JPM was recently trading at $92.50 and has an implied volatility of 16.15% for this period. Based on an analysis of the options available for JPM expiring on 19-Jan-2018, there is a 55.21% likelihood that the underlying will close within the analyzed range of $79.34-$96.97 at expiration. In this scenario, the average linear return for the trade would be 53.76%.
Price target: Zacks Research has updated their six-month price target for JPM to $88.15. This price target is a consensus price created from the price targets published by 13 participating analysts whose targets ranged from $65.00 to $102.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for JPM has been updated to 2.29, which indicates a buy consensus from analysts. Sentiment has moved from 2.20 to 2.16 to 2.22 over the past three months.
Trade approach: The difference between the current price for JPM and the mean price target is $3.50, which represents a 4.70% move (9.76% annualized). Since the 180-day implied volatility for JPM is 17.30%, a neutral range-bound strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this neutral range-bound strategy, the trade would be profitable if JPMORGAN CHASE closed in the range $79.12-$98.38 on 19-Jan-2018. Based on our analysis, there is a 59.89% likelihood of this return. The maximum return for this trade would be 54.32% if JPMORGAN CHASE closed in the range $80.00-$97.50.
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 8/4/2017 9:36:59 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.