Big Gainer Alert: Trading today’s 11.0% move in FOUNDATION BUILDING MATERIALS INC $FBM

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Quantchabot has detected a promising Bull Call Spread trade opportunity for FOUNDATION BUILDING MATERIALS INC (FBM) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FBM was recently trading at $20.98 and has an implied volatility of 38.42% for this period. Based on an analysis of the options available for FBM expiring on 21-Feb-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $21.04-$24.64 at expiration. In this scenario, the average linear return for the trade would be 34.34%.

Big 10.95% Change: After closing the last trading session at $18.91, FOUNDATION BUILDING MATERIALS INC opened today at $20.70 and has reached a high of $21.62.

Trade approach: A movement as big as 10.95% is a significantly bullish indicator, so this trade is designed to be profitable if FBM maintains its current direction and does not revert back to pricing on the bearish side of $20.98 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 FOUNDATION BUILDING MATERIALS INC closes at or above $20.95 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 51.08% 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.