The automated Quantcha Trade Ideas Service has detected a promising Long Call trade opportunity for SIMON PROPERTY GROUP (SPG) for the 21-Jul-2017 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

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.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.