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Quantchabot has detected a promising Bull Put Spread trade opportunity for SUNCOR ENERGY (SU) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SU was recently trading at $20.59 and has an implied volatility of 49.29% for this period. Based on an analysis of the options available for SU expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.38-$24.61 at expiration. In this scenario, the average linear return for the trade would be 68.67%.
Big 8.49% Change: After closing the last trading session at $18.98, SUNCOR ENERGY opened today at $19.09 and has reached a high of $20.61.
Trade approach: A movement as big as 8.49% is a significantly bullish indicator, so this trade is designed to be profitable if SU maintains its current direction and does not revert back to pricing on the bearish side of $20.59 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 SUNCOR ENERGY closes at or above $20.15 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.45% 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.