Big Gainer Alert: Trading today’s 8.5% move in PRINCIPAL FINANCIAL $PFG

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

PFG was recently trading at $59.80 and has an implied volatility of 37.88% for this period. Based on an analysis of the options available for PFG expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $59.25-$68.48 at expiration. In this scenario, the average linear return for the trade would be 27.11%.

Big 8.53% Change: After closing the last trading session at $55.10, PRINCIPAL FINANCIAL opened today at $58.00 and has reached a high of $60.52.

Trade approach: A movement as big as 8.53% is a significantly bullish indicator, so this trade is designed to be profitable if PFG maintains its current direction and does not revert back to pricing on the bearish side of $59.80 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 PRINCIPAL FINANCIAL closes at or above $58.90 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.63% 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.