52-Week High Alert: Trading today’s movement in PNC FINANCIAL SERVICES $PNC

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Quantchabot has detected a promising Bull Call Spread trade opportunity for PNC FINANCIAL SERVICES (PNC) for the 1-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PNC was recently trading at $170.99 and has an implied volatility of 30.60% for this period. Based on an analysis of the options available for PNC expiring on 1-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $171.00-$188.82 at expiration. In this scenario, the average linear return for the trade would be 62.64%.

52 week high: PNC FINANCIAL SERVICES recently reached a new 52-week high at $172.01. PNC had traded in the range $79.41-$171.00 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 PNC maintains its current direction and does not revert back to pricing on the bearish side of $170.99 on 1-Apr-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 PNC FINANCIAL SERVICES closes at or above $170.80 on 1-Apr-2021. Based on our risk-neutral analysis, there is a 50.48% 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.