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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for ORACLE CORP (ORCL) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ORCL was recently trading at $49.32 and has an implied volatility of 40.21% for this period. Based on an analysis of the options available for ORCL expiring on 15-May-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $49.14-$60.27 at expiration. In this scenario, the average linear return for the trade would be 65.20%.
Big 7.36% Change: After closing the last trading session at $45.94, ORACLE CORP opened today at $46.38 and has reached a high of $49.84.
Trade approach: A movement as big as 7.36% is a significantly bullish indicator, so this trade is designed to be profitable if ORCL maintains its current direction and does not revert back to pricing on the bearish side of $49.32 on 15-May-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 ORACLE CORP closes at or above $47.10 on 15-May-2020. Based on our risk-neutral analysis, there is a 58.24% 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.