The automated Quantcha Trade Ideas Service has detected a promising
F was recently trading at $11.74 and has an implied volatility of 19.96% for this period. Based on an analysis of the options available for F expiring on 15-Sep-2017, there is a 25.68% likelihood that the underlying will close within the analyzed range of $12.60-$15.40 at expiration. In this scenario, the average linear return for the trade would be 251.06%.
Price target: Zacks Research has updated their six-month price target for F to $14.00. This price target is a consensus price created from the price targets published by 14 participating analysts whose targets ranged from $11.00 to $20.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for F has been updated to 2.5, which indicates a buy consensus from analysts. Sentiment has moved from 2.69 to 2.73 to 2.47 over the past three months.
Trade approach: The difference between the current price for F and the mean price target is $2.26, which represents a 19.25% move (42.90% annualized). Since the 180-day implied volatility for F is 24.09%, 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 FORD MOTOR closed at or above $12.47 on 15-Sep-2017. Based on our analysis, there is a 32.03% 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 12:21:24 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.