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Quantchabot has detected a promising Bull Put Spread trade opportunity for FUELCELL ENERGY (FCEL) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FCEL was recently trading at $1.95 and has an implied volatility of 174.86% for this period. Based on an analysis of the options available for FCEL expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $1.95-$2.73 at expiration. In this scenario, the average linear return for the trade would be 74.82%.
Big 13.04% Change: After closing the last trading session at $1.73, FUELCELL ENERGY opened today at $1.75 and has reached a high of $1.95.
Trade approach: A movement as big as 13.04% is a significantly bullish indicator, so this trade is designed to be profitable if FCEL maintains its current direction and does not revert back to pricing on the bearish side of $1.95 on 21-Feb-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if FUELCELL ENERGY closes at or above $1.95 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 50.06% 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.