Big Gainer Alert: Trading today’s 9.9% move in CAPITAL ONE FINANCIAL $COF

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Quantchabot has detected a promising Bull Call Spread trade opportunity for CAPITAL ONE FINANCIAL (COF) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

COF was recently trading at $70.06 and has an implied volatility of 51.51% for this period. Based on an analysis of the options available for COF expiring on 19-Jun-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $70.10-$85.05 at expiration. In this scenario, the average linear return for the trade would be 59.15%.

Big 9.90% Change: After closing the last trading session at $63.75, CAPITAL ONE FINANCIAL opened today at $69.62 and has reached a high of $71.47.

Trade approach: A movement as big as 9.90% is a significantly bullish indicator, so this trade is designed to be profitable if COF maintains its current direction and does not revert back to pricing on the bearish side of $70.06 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 CAPITAL ONE FINANCIAL closes at or above $69.55 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 51.64% 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.