diff --git a/Cargo.lock b/Cargo.lock
index d9a1fab..bcb0ab3 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -44,7 +44,7 @@ dependencies = [
 
 [[package]]
 name = "ned"
-version = "1.2.3"
+version = "1.2.4"
 dependencies = [
  "ansi_term 0.11.0 (registry+https://github.com/rust-lang/crates.io-index)",
  "getopts 0.2.17 (registry+https://github.com/rust-lang/crates.io-index)",
diff --git a/Cargo.toml b/Cargo.toml
index ce1c879..c9000c5 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -1,6 +1,6 @@
 [package]
 name = "ned"
-version = "1.2.3"
+version = "1.2.4"
 authors = ["Nev Delap <nevdelap@gmail.com>"]
 
 [dependencies]
diff --git a/README.md b/README.md
index 7a9a160..d5bb21b 100644
--- a/README.md
+++ b/README.md
@@ -95,13 +95,12 @@ Quiet:
     as many files as needed to find a match. Even without this shortcutting
     behaviour quiet matches are more performant than non-quiet matches.
 
-ned 1.2.3 Copyright (C) 2016-2018 Nev Delap - https://github.com/nevdelap/ned
+ned 1.2.4 Copyright (C) 2016-2018 Nev Delap - https://github.com/nevdelap/ned
 
 License GPLv3+: GNU GPL version 3 or later <http://gnu.org/licenses/gpl.html>.
 This is free software: you are free to change and redistribute it.
 There is NO WARRANTY, to the extent permitted by law.
 
-
 ```
 
 # I.A.Q. (Infrequently Asked Questions)
diff --git a/src/parameters.rs b/src/parameters.rs
index 3378ee1..54d164c 100644
--- a/src/parameters.rs
+++ b/src/parameters.rs
@@ -88,8 +88,8 @@ pub fn get_parameters(options_with_defaults: &OptionsWithDefaults) -> NedResult<
 
     let colors = parse_opt_str(&options_with_defaults, "colors", Some(Colors::Off))?
         .expect("The default is a Some.");
-    let colors = (colors == Colors::Always
-        || colors != Colors::Off && (stdout || replace.is_none()) && isatty)
+    let colors = (colors == Colors::Always && (replace.is_none() || replace.is_some() && stdout)
+        || colors == Colors::Auto && (replace.is_none() || stdout) && isatty)
         && colors != Colors::Never;
 
     // -C --context takes precedence over -B --before and -A --after.
diff --git a/src/tests/general.rs b/src/tests/general.rs
index 60330dc..5311e04 100644
--- a/src/tests/general.rs
+++ b/src/tests/general.rs
@@ -504,7 +504,12 @@ fn colored_match() {
 
 #[test]
 fn colored_match_whole_files() {
-    let args = vec!["accidentally.*hand", "test", "--whole-files", "--colors=always"];
+    let args = vec![
+        "accidentally.*hand",
+        "test",
+        "--whole-files",
+        "--colors=always",
+    ];
     let expected_exit_code = 0;
     let expected_screen_output = [
         "\u{1b}[35mtest/file1.txt:\n\u{1b}[0mThe \u{1b}[1;31maccidentally ghastly hand\u{1b}[0m \
@@ -520,7 +525,12 @@ fn colored_match_whole_files() {
 
 #[test]
 fn colored_match_file_names_only() {
-    let args = vec!["accidentally.*hand", "test", "--colors=always", "--filenames-only"];
+    let args = vec![
+        "accidentally.*hand",
+        "test",
+        "--colors=always",
+        "--filenames-only",
+    ];
     let expected_exit_code = 0;
     let expected_screen_output = ["\u{1b}[35mtest/file1.txt\n\u{1b}[0m"];
 
@@ -544,7 +554,12 @@ fn colored_match_file_names_only_whole_files() {
 
 #[test]
 fn colored_match_line_numbers_only() {
-    let args = vec!["rejoices.*hand", "test", "--colors=always", "--line-numbers-only"];
+    let args = vec![
+        "rejoices.*hand",
+        "test",
+        "--colors=always",
+        "--line-numbers-only",
+    ];
     let expected_exit_code = 0;
     let expected_screen_output = ["\u{1b}[35m2\n\u{1b}[0m"];
 
@@ -575,7 +590,12 @@ fn colored_match_no_file_names_whole_files() {
 
 #[test]
 fn colored_match_no_file_names() {
-    let args = vec!["accidentally.*hand", "test", "--colors=always", "--no-filenames"];
+    let args = vec![
+        "accidentally.*hand",
+        "test",
+        "--colors=always",
+        "--no-filenames",
+    ];
     let expected_exit_code = 0;
     let expected_screen_output = ["\u{1b}[35m1:\u{1b}[0mThe \u{1b}[1;31maccidentally ghastly \
                                    hand\u{1b}[0m plans AN ESCAPE from a cream puff the placid \