The automated Quantcha Trade Ideas Service has detected a promising
SYF was recently trading at $33.60 and has an implied volatility of 24.58% for this period. Based on an analysis of the options available for SYF expiring on 15-Sep-2017, there is a 22.09% likelihood that the underlying will close within the analyzed range of $37.80-$46.20 at expiration. In this scenario, the average linear return for the trade would be 287.10%.
Price target: Zacks Research has updated their six-month price target for SYF to $42.00. This price target is a consensus price created from the price targets published by 9 participating analysts whose targets ranged from $37.00 to $47.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for SYF has been updated to 1.33, which indicates a strong buy consensus from analysts. Sentiment has moved from 1.33 to 1.33 to 1.33 over the past three months.
Trade approach: The difference between the current price for SYF and the mean price target is $8.40, which represents a 24.99% move (57.19% annualized). Since the 180-day implied volatility for SYF is 27.55%, 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 SYNCHRONY FINANCIAL closed at or above $37.55 on 15-Sep-2017. Based on our analysis, there is a 27.87% 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 3/28/2017 2:19:50 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.