In the financial industry, technical analysis is being disrupted by artificial intelligence, leading to a shift towards quantitative analysis. This approach focuses on studying price behavior as a measurable probability space, with AI agents writing opinions at a higher quality and pace than humans. The era of paid technical analysis may be coming to an end.

Traders are eyeing three discounted plays in the market, including Pinterest (PINS). The stock has seen a decline following mixed Q3 results, with potential for contrarian opportunities. Using quantitative analysis, traders can identify attractive trading ideas based on price clustering dynamics, such as the 27/28 bull call spread on PINS.

Another stock attracting attention is Block (XYZ), which is exposed to the cryptocurrency sector. Despite recent losses, quant traders may see an opportunity in XYZ stock. By analyzing forward 10-week median returns and price clustering dynamics, traders can make informed decisions on trades like the 62.50/65.00 bull call spread on XYZ expiring Jan. 16.

HP (HPQ) is a risky play in the tech sector, with a significant decline in stock value this year. Data-driven traders may still find potential in HPQ stock by analyzing forward 10-week median returns and price clustering dynamics. The 26/27 bull spread on HPQ expiring Jan. 16 could offer an asymmetric opportunity with a max payout of over 156%.

Read more at Barchart: Using Quant Analysis to Uncover the Best Discounts (PINS, XYZ, HPQ)