Price Target Alert: Trading the Zacks price target change for SIMON PROPERTY GROUP
The automated Quantcha Trade Ideas Service has detected a promising
SPG was recently trading at $179.15 and has an implied volatility of 17.64% for this period. Based on an analysis of the options available for SPG expiring on 21-Jul-2017, there is a 24.72% likelihood that the underlying will close within the analyzed range of $193.44-$236.42 at expiration. In this scenario, the average linear return for the trade would be 398.80%.
Price target: Zacks Research has updated their six-month price target for SPG to $214.93. This price target is a consensus price created from the price targets published by 14 participating analysts whose targets ranged from $160.00 to $264.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for SPG has been updated to 2, which indicates a buy consensus from analysts. Sentiment has moved from 1.72 to 1.72 to 1.88 over the past three months.
Trade approach: The difference between the current price for SPG and the mean price target is $37.35, which represents a 19.97% move (44.66% annualized). Since the 180-day implied volatility for SPG is 18.97%, 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 SIMON PROPERTY GROUP closed at or above $191.00 on 21-Jul-2017. Based on our analysis, there is a 29.29% 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 2/17/2017 1:21:59 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.