Big Gainer Alert: Trading today’s 7.3% move in SCHLUMBERGER $SLB

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Quantchabot has detected a promising Bull Put Spread trade opportunity for SCHLUMBERGER (SLB) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SLB was recently trading at $28.02 and has an implied volatility of 51.26% for this period. Based on an analysis of the options available for SLB expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.02-$34.09 at expiration. In this scenario, the average linear return for the trade would be 63.90%.

Big 7.27% Change: After closing the last trading session at $26.12, SCHLUMBERGER opened today at $26.00 and has reached a high of $28.08.

Trade approach: A movement as big as 7.27% is a significantly bullish indicator, so this trade is designed to be profitable if SLB maintains its current direction and does not revert back to pricing on the bearish side of $28.02 on 16-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 SCHLUMBERGER closes at or above $27.80 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.64% 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.