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Quantchabot has detected a promising Bull Call Spread trade opportunity for WATERS (WAT) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WAT was recently trading at $197.63 and has an implied volatility of 33.30% for this period. Based on an analysis of the options available for WAT expiring on 19-Jun-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $197.75-$224.03 at expiration. In this scenario, the average linear return for the trade would be 20.66%.
Big 7.34% Change: After closing the last trading session at $184.11, WATERS opened today at $187.15 and has reached a high of $197.69.
Trade approach: A movement as big as 7.34% is a significantly bullish indicator, so this trade is designed to be profitable if WAT maintains its current direction and does not revert back to pricing on the bearish side of $197.63 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 WATERS closes at or above $197.70 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 50.08% 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.