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Quantchabot has detected a promising Bull Call Spread trade opportunity for CHARLES RIVER (CRL) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CRL was recently trading at $226.00 and has an implied volatility of 37.19% for this period. Based on an analysis of the options available for CRL expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $226.03-$252.03 at expiration. In this scenario, the average linear return for the trade would be 42.07%.
52 week high: CHARLES RIVER recently reached a new 52-week high at $228.86. CRL had traded in the range $95.58-$221.97 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if CRL maintains its current direction and does not revert back to pricing on the bearish side of $226.00 on 16-Oct-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 CHARLES RIVER closes at or above $223.80 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 53.63% 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.