52-Week High Alert: Trading today’s movement in GENERAL ELECTRIC $GE

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Quantchabot has detected a promising Bull Call Spread trade opportunity for GENERAL ELECTRIC (GE) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GE was recently trading at $13.02 and has an implied volatility of 34.46% for this period. Based on an analysis of the options available for GE expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $13.05-$14.87 at expiration. In this scenario, the average linear return for the trade would be 13.84%.

52 week high: GENERAL ELECTRIC recently reached a new 52-week high at $13.16. GE had traded in the range $7.65-$13.09 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if GE maintains its current direction and does not revert back to pricing on the bearish side of $13.02 on 17-Apr-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 GENERAL ELECTRIC closes at or above $13.01 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.02% 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.