Big Gainer Alert: Trading today’s 8.0% move in PRINCIPAL FINANCIAL $PFG

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for PRINCIPAL FINANCIAL (PFG) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PFG was recently trading at $34.22 and has an implied volatility of 54.37% for this period. Based on an analysis of the options available for PFG expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $33.69-$43.48 at expiration. In this scenario, the average linear return for the trade would be 62.53%.

Big 7.98% Change: After closing the last trading session at $31.69, PRINCIPAL FINANCIAL opened today at $34.28 and has reached a high of $35.13.

Trade approach: A movement as big as 7.98% is a significantly bullish indicator, so this trade is designed to be profitable if PFG maintains its current direction and does not revert back to pricing on the bearish side of $34.22 on 17-Jul-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 PRINCIPAL FINANCIAL closes at or above $32.95 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 53.49% 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.