Big Gainer Alert: Trading today’s 7.1% move in CARNIVAL $CCL

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for CARNIVAL (CCL) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CCL was recently trading at $12.75 and has an implied volatility of 105.64% for this period. Based on an analysis of the options available for CCL expiring on 19-Jun-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.76-$19.11 at expiration. In this scenario, the average linear return for the trade would be 110.26%.

Big 7.05% Change: After closing the last trading session at $11.91, CARNIVAL opened today at $12.06 and has reached a high of $12.75.

Trade approach: A movement as big as 7.05% is a significantly bullish indicator, so this trade is designed to be profitable if CCL maintains its current direction and does not revert back to pricing on the bearish side of $12.75 on 19-Jun-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 CARNIVAL closes at or above $12.40 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 52.82% 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.