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Quantchabot has detected a promising Bull Call Spread trade opportunity for BLACKBERRY LIMITED COMMON STOC (BB) for the 27-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BB was recently trading at $5.14 and has an implied volatility of 51.32% for this period. Based on an analysis of the options available for BB expiring on 27-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.14-$6.16 at expiration. In this scenario, the average linear return for the trade would be 27.99%.
Big 8.26% Change: After closing the last trading session at $4.75, BLACKBERRY LIMITED COMMON STOC opened today at $4.75 and has reached a high of $5.23.
Trade approach: A movement as big as 8.26% is a significantly bullish indicator, so this trade is designed to be profitable if BB maintains its current direction and does not revert back to pricing on the bearish side of $5.14 on 27-Nov-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 BLACKBERRY LIMITED COMMON STOC closes at or above $5.11 on 27-Nov-2020. Based on our risk-neutral analysis, there is a 51.42% 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.