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Quantchabot has detected a promising Long Call trade opportunity for ABB (ABB) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ABB was recently trading at $30.45 and has an implied volatility of 22.24% for this period. Based on an analysis of the options available for ABB expiring on 15-Jan-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $30.45-$31.00 at expiration. In this scenario, the average linear return for the trade would be 17.08%.
52 week high: ABB recently reached a new 52-week high at $30.49. ABB had traded in the range $14.71-$30.44 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 ABB maintains its current direction and does not revert back to pricing on the bearish side of $30.45 on 15-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 ABB closes at or above $30.45 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.02% 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.