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Quantchabot has detected a promising Bull Call Spread trade opportunity for SYNNEX (SNX) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SNX was recently trading at $146.90 and has an implied volatility of 27.67% for this period. Based on an analysis of the options available for SNX expiring on 20-Mar-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $146.98-$164.94 at expiration. In this scenario, the average linear return for the trade would be 16.43%.
Big 14.02% Change: After closing the last trading session at $128.84, SYNNEX opened today at $142.34 and has reached a high of $148.63.
Trade approach: A movement as big as 14.02% is a significantly bullish indicator, so this trade is designed to be profitable if SNX maintains its current direction and does not revert back to pricing on the bearish side of $146.90 on 20-Mar-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 SYNNEX closes at or above $146.90 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 50.19% 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.