The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for QUALCOMM () for the 19-Jan-2018 expiration period. You can analyze the opportunity in depth over at the .
QCOM was recently trading at $55.08 and has an implied volatility of 23.45% for this period. Based on an analysis of the options available for QCOM expiring on 19-Jan-2018, there is a 28.27% likelihood that the underlying will close within the analyzed range of $58.29-$71.24 at expiration. In this scenario, the average linear return for the trade would be 143.58%.
Price target: Zacks Research has updated their six-month price target for QCOM to $64.77. This price target is a consensus price created from the price targets published by 15 participating analysts whose targets ranged from $50.00 to $75.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for QCOM has been updated to 1.91, which indicates a buy consensus from analysts. Sentiment has moved from 2.09 to 1.86 to 1.76 over the past three months.
Trade approach: The difference between the current price for QCOM and the mean price target is $10.92, which represents a 17.59% move (38.89% annualized). Since the 180-day implied volatility for QCOM is 24.72%, 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 QUALCOMM closed at or above $58.14 on 19-Jan-2018. Based on our analysis, there is a 36.88% 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 6/30/2017 9:48:23 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.