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Quantchabot has detected a promising Bull Call Spread trade opportunity for SONY CORPORATION (SNE) for the 29-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SNE was recently trading at $104.74 and has an implied volatility of 26.14% for this period. Based on an analysis of the options available for SNE expiring on 29-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $104.75-$111.06 at expiration. In this scenario, the average linear return for the trade would be 72.45%.
52 week high: SONY CORPORATION recently reached a new 52-week high at $105.00. SNE had traded in the range $50.94-$103.52 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 SNE maintains its current direction and does not revert back to pricing on the bearish side of $104.74 on 29-Jan-2021. 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 SONY CORPORATION closes at or above $104.65 on 29-Jan-2021. Based on our risk-neutral analysis, there is a 50.63% 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.