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Quantchabot has detected a promising Bull Call Spread trade opportunity for CORNERSTONE BUILDING BRANDS INC (CNR) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CNR was recently trading at $9.93 and has an implied volatility of 63.95% for this period. Based on an analysis of the options available for CNR expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $9.93-$10.94 at expiration. In this scenario, the average linear return for the trade would be 10.96%.
Big 9.72% Change: After closing the last trading session at $9.05, CORNERSTONE BUILDING BRANDS INC opened today at $9.25 and has reached a high of $10.20.
Trade approach: A movement as big as 9.72% is a significantly bullish indicator, so this trade is designed to be profitable if CNR maintains its current direction and does not revert back to pricing on the bearish side of $9.93 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 CORNERSTONE BUILDING BRANDS INC closes at or above $9.75 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 57.52% 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.