Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for CORNING (GLW) for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GLW was recently trading at $38.08 and has an implied volatility of 30.02% for this period. Based on an analysis of the options available for GLW expiring on 22-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $38.08-$39.85 at expiration. In this scenario, the average linear return for the trade would be 51.54%.
52 week high: CORNING recently reached a new 52-week high at $38.75. GLW had traded in the range $17.44-$38.44 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 GLW maintains its current direction and does not revert back to pricing on the bearish side of $38.08 on 22-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 CORNING closes at or above $37.95 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 53.09% 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.