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Quantchabot has detected a promising Bull Call Spread trade opportunity for FORESCOUT TECHNOLOGIES INC. COMMON STOCK (FSCT) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FSCT was recently trading at $22.30 and has an implied volatility of 76.49% for this period. Based on an analysis of the options available for FSCT expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $22.31-$30.11 at expiration. In this scenario, the average linear return for the trade would be 34.88%.
Big 9.80% Change: After closing the last trading session at $20.31, FORESCOUT TECHNOLOGIES INC. COMMON STOCK opened today at $20.34 and has reached a high of $23.11.
Trade approach: A movement as big as 9.80% is a significantly bullish indicator, so this trade is designed to be profitable if FSCT maintains its current direction and does not revert back to pricing on the bearish side of $22.30 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 FORESCOUT TECHNOLOGIES INC. COMMON STOCK closes at or above $21.85 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.74% 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.