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Quantchabot has detected a promising Bull Call Spread trade opportunity for PLUG POWER (PLUG) for the 26-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PLUG was recently trading at $70.81 and has an implied volatility of 151.07% for this period. Based on an analysis of the options available for PLUG expiring on 26-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $70.83-$119.86 at expiration. In this scenario, the average linear return for the trade would be 112.55%.
Big 7.26% Change: After closing the last trading session at $66.02, PLUG POWER opened today at $70.30 and has reached a high of $72.32.
Trade approach: A movement as big as 7.26% is a significantly bullish indicator, so this trade is designed to be profitable if PLUG maintains its current direction and does not revert back to pricing on the bearish side of $70.81 on 26-Feb-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 PLUG POWER closes at or above $69.50 on 26-Feb-2021. Based on our risk-neutral analysis, there is a 51.43% 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.